One Person Company

If you think you are a one-man army, and can handle situations in single hand, you are truly one of a kind. If you truly possess a burning desire to succeed, you are bound to reach the summit. In generations of start-ups and entrepreneurs, starting out on a business venture alone is the trend.

You will be glad to learn that you can now establish a One Person Company (OPC) in India that too with the minimum cost and hassle. Among all other provisions of the new Companies Act, entrepreneurs and start-ups seemed to sit on the edge of their seats for this one. Let us tell you why.

One Person Company is a type of business entity in which there is only one owner with limited liabilities. This one person act both as a shareholder as well as the director. The purpose of OPC concept is basically to eradicate the limitation of a sole proprietorship, which is the most popular form for small businesses in India. In a One Person Company, the liability of owner is limited to the invested capital in this form.

If you are the independent entrepreneur types, and want to establish your business without involving any other person, then choosing to establish a One Person Company (OPC) will be the right thing to do.

Before the OPC concept was introduced in India, people would invariably choose Proprietorship as their form of business. Proprietorship has its own share of disadvantages, and this kind of business is not trustworthy in India anymore. But don’t lose heart yet, One Person Company (OPC) is the perfect answer to the problems associated with Proprietorship.


One Person Company has following features and restrictions:

  • It allows a significant degree of separation between operations and ownership.
  • Less compliance is needed as compared to a private limited company.
  • It proves useful for small entrepreneurs who directly access target market.
  • Banking and financial institutions prefer to lend money to the company instead of proprietary firms.
  • It makes decision-making process much faster because of single ownership.
  • The owner can anytime convert OPC to a private limited company with ease.