One Person Company: A Complete Guide for Solo Entrepreneurs
Starting a business independently has become easier with the introduction of the One Person Company (OPC) structure. Designed to support solo entrepreneurs, a One Person Company allows a single individual to operate a corporate entity with limited liability protection and a separate legal identity. In India, the concept of One Person Company was introduced under the Companies Act, 2013 to encourage small entrepreneurs to enter the organized corporate sector. What is a One Person Company? A One Person Company (OPC) is a type of private company that can be formed with only one member and one director. It combines the benefits of sole proprietorship and a private limited company. The owner enjoys full control over the business while benefiting from limited liability protection. Unlike a sole proprietorship, an OPC has a separate legal identity, meaning the company and the owner are treated as separate entities in the eyes of the law. Key Features of One Person Company ...