A One Person Company (OPC) is a type of private company in India where a single individual can be the sole shareholder and director. It was introduced under the Companies Act, 2013 to give solo entrepreneurs the benefits of limited liability and a separate legal identity without the requirement of a co-founder or minimum paid-up capital.<\/p>\n
An OPC allows a single person to:
\n– Incorporate a company with one shareholder and one director (can be the same person)
\n– Operate with limited personal liability
\n– Enjoy the benefits of a formal company structure
\n– Access credit more easily than as a sole proprietor<\/p>\n
Unlike a sole proprietorship<\/a>, the OPC is a separate legal entity. The owner’s personal assets<\/a> are protected from business liabilities<\/a>.<\/p>\n Before 2022: After 2022 amendment: – Single shareholder; one director (same person can hold both roles)OPC Conversi<\/a>on Rules (Post-2022 Amendments)<\/h2>\n
\n– Mandatory conversion to Pvt Ltd company if paid-up capital exceeded Rs 50 lakh or annual turnover exceeded Rs 2 crore<\/p>\n
\n– No mandatory conversion based on financial thresholds
\n– Voluntary conversion to Pvt Ltd or other forms is allowed<\/p>\nKey Features<\/h2>\n
\n– Nominee required: the shareholder must nominate a person to take over the company in case of death or incapacity
\n– More compliance than a sole proprietorship (annual filings with MCA, board resolutions, audited accounts)
\n– Corporate tax<\/a> rates apply: 22% (plus surcharge and cess) under the new regime, or 25% + cess for companies below Rs 400 crore turnover<\/p>\nOPC vs Sole Proprietorship vs Pvt Ltd<\/h2>\n