A One Person Company (OPC) is a type of business structure in India introduced under the Companies Act, 2013. It allows a single individual to establish a limited liability entity. Essentially, it’s a company with only one member (owner), and the sole person acts as both the director and shareholder. OPC is designed to encourage small and medium enterprises or individual entrepreneurs by simplifying the process of setting up and running a company.
The biggest advantage of an OPC is that the liability of the owner is limited to the extent of their shares in the company. Personal assets are protected from any debts or liabilities of the business.
OPC has its own legal identity, separate from the owner. It can own property, incur debts, and enter into contracts in its own name, allowing the owner to act separately.
As the name suggests, an OPC is owned by a single person who acts as both the director and shareholder, simplifying decision-making and management.
OPCs have fewer compliance requirements compared to other business structures, making it easier for individual entrepreneurs to manage their business.