ONE PERSON COMPANY (OPC)

WHAT IS A ONE PERSON COMPANY?

Companies Act 2013 brought the concept of One Person Company set up in which such a structure is formed where there is a hybrid between a full structured proper company and a sole proprietorship firm. In OPC, as the name suggests, the company is having only One Director and only one person can form a company and the company will be having a separate legal entity of its own. 

WHAT ARE THE ADVANTAGES OF SETTING UP A ONE PERSON COMPANY?

1. OPC creates a Separate Legal Entity for a person running a single handed business.


2. OPC creates a Limited Liability on the Director of the Business


3. There is only one shareholder in OPC.


4. The discretion to run the business vests in the Director who is the sole owner of the Business as to how the Director wants to manage his own business.


5. There are Lesser Compliances in OPC structure than any other Company Structure.


6. There is a concept of Perpetual Succession in OPC


7. There is no requirement for a middlemanin the OPC Structure.


8. OPC structure is exempted from Annual General Meetings and Extraordinary General Meetings as compared to the other company structures.

WHAT IS THE TIME TAKEN IS INCORPORATING A ONE PERSON COMPANY?

Incorporating a One Person Company can take a maximum of 15-20 days.