08-04-2025
ONE PERSON COMPANY ONE PERSON COMPANY
Has only one person as a member. Conditions
OPC is a private limited company. No natural person shall be eligible to incorporate more than One
OPC or become nominee in more than One OPC;
Member mentions in MOA name of nominee who will become
IF a member of OPC becomes a member in another OPC by
member of OPC in case of death or incapacity of member. virtue of his being a nominee in that 2nd OPC, such person shall
Written consent of nominee has to be filed with ROC meet the eligibility criteria within 182 days;
Name of Nominee may be changed and this will NOT be No minor shall become member or nominee of OPC or can hold
share with beneficial interest;
considered as alteration of MOA.
OPC cannot be incorporated or converted into Sec 8 company
Eligibility for becoming Member or Nominee : only a natural OPC cannot carry out Non Banking Financial Investment
person who is activities
an Indian citizen and OPC cannot convert voluntarily into any kind of co. unless 2 yrs
resident in India i.e. a person who has stayed in India for a have expired from its date of incorporation
period of not less 120 days during the immediately preceding
one financial year.
ONE PERSON COMPANY ONE PERSON COMPANY
Benefits of One Person Company
Benefits of One Person Company
Provides tremendous opportunities for small businessmen
Gives the individual entrepreneurs all the benefits of a
and traders, including those working in areas like handloom,
company, i.e.
handicrafts and pottery who earlier did not have a legal
Get credit, bank loans, and access to market,
entity of a company. OPC has given them an opportunity to
Limited liability, and
start their own ventures as an enterprise with a formal
Legal protection available to cos.
business structure.
Before Companies Act, 2013, atleast 2 shareholders were
Lesser compliance required by a OPC in terms of filing
required to start a company. Now just one person can start
returns, balance sheets, audit, management and
OPC.
administration etc.
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08-04-2025
ONE PERSON COMPANY ONE PERSON COMPANY
Benefits of One Person Company Benefits of One Person Company
Less Compliance: Less Compliance: Following provisions shall not apply to a OPC-
• Any business which is required to be transacted at an annual • Section 98 – Power of Tribunal to call meetings of members etc
• Section 100- Calling of extraordinary general meeting;
general meeting or other general meeting of a company by
• Section 101- Notice of meeting;
means of an ordinary or special resolution, it shall be sufficient • Section 102 – Statement to be annexed to notice;
if, in case of OPC, the resolution is communicated by the • Section 103 – Quorum for meetings;
member to the company and entered in the minutes book. • Section 104 –Chairman of meetings
In case there is only one director on the board of a OPC, any • Section 105 – Proxies;
business which is required to be transacted at the meeting of • Section 106 –Restriction on voting rights;
the board of directors (BOD) of a co., it shall be sufficient if • Section 107 –Voting by show of hands;
• Section 108 –Voting through electronic means;
the resolution by director is entered in the minutes book and
• Section 109 – Demand for poll;
signed and dated by such director and such date shall be
• Section 110 – Postal Ballot;
deemed to be the date of the meeting of BOD • Section 111 –Circulation of members’ resolution.
