OPC - PVT Ltd

What is One Person Private Limited Company ? The concept of One Person Company in India introduced through Companies Act, 2013 to support entrepreneurs who on their own capable of starting venture by allowing them to create a single person business entity. One of the biggest advantages of One Person Company (OPC) is that there can be only one member in OPC, while a minimum of two members required for incorporating and maintaining Private Limited Company or Limited Liability Partnership (LLP). Similar to a Private Limited Company, a One Person Company is a separate legal entity from its promoter, offering limited liability protection to its sole shareholder, while having continuity of business and being easy to incorporate. Though One Person Company allows single Entrepreneur to operate a corporate entity with limited liability protection, an OPC does have a few limitations. One Person Company (OPC) must nominate a nominee Director who will become owner of OPC in case the sole director is disabled. Also One Person Company must be converted into Private Limited Company if it crosses an annual turnover of Rs.2 crores and must file audited financial statements with the Ministry of Corporate Affairs at the end of each Financial Year like all types of Companies. Therefore, it is essential for the Entrepreneur to carefully consider the features of a One Person Company before incorporation.