One Person Company is a type of company to start a business in India introduced under Companies Act 2013. One Person Company is shortened as OPC is a company which is run by the single person who is also the Director & Shareholder similar to proprietor but provides the added advantage to limit liability to the shareholder. OPC also enables growth and greater regulation of the corporate sector in India.
OPC is very similar to Private Limited Company under Companies Act 2013 when it comes to compliance except it will only have one director instead. OPC is still required to have a nominee at all times.
As stated in Section 2 (62): “one person company means a company which has only one person as a member.”
OPC is a combination of sole proprietorship and a company form of business. Thus, it eliminates the inconvenience of finding the right kind of co-partner/s for starting a business as a registered entity.
The only exclusion provided by the Act to an OPC is that a “NATURALLY BORN” Indian who is also a resident of India is eligible to incorporate a One Person Company. Meaning, only a natural person who is an Indian citizen and resident in India shall be eligible to incorporate an OPC and shall be the nominee of the OPC.