One Person Company (OPC)

A one-person company (OPC) allows a single entrepreneur to operate a corporate entity with limited liability protection...

Single Ownership: An OPC is formed by a single person, who is both the shareholder and director.
Limited Liability: The liability of the member is limited to their shares, protecting personal assets.
Perpetual Succession: An OPC can continue its existence even after the death or incapacity of the owner, through the nomination of another person.
Separate Legal Entity: An OPC is a distinct legal entity from its owner, allowing it to own property, sue, and be sued in its own name.
Minimum Compliance: OPCs have fewer compliance requirements compared to other types of companies, making them easier to manage.

Simplified Annual Returns Filings: OPCs are required to file fewer documents with the Registrar of Companies.
Exemptions from Holding Annual General Meetings (AGMs): OPCs are not required to hold AGMs, simplifying their operational processes.
Access to Loans: Banks and financial institutions are more likely to offer loans to OPCs due to their formal structure and limited liability.

A One Person Company has a special legal status, different from that of sole proprietorships. The ownership pattern of an OPC provides for a single person to own the entire company but with the additional advantage of having a nominee in place. This provides continuity and stability to the business even under unforeseen conditions.