What is One Person Company?

RR Posted by: Radhika Raina
• 28 September, 2025
3 Reply

A one-person company is also known as the OPC. It is a company that is held by a single individual and has full control over the management and operation of the company. Like other companies, OPC allows individuals to enjoy all the limited liability protection for their personal assets, in which the company is kept separate from the individuals. This allows more investors because they know that their personal assets are protected in the one-person company.

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  • Neel Kaul 02 October, 2025

    Here are the advantages and disadvantages of a one-person company. 

    Advantages:

    • LLPs help to protect personal assets from business liabilities. 
    • OPC allows a sole individual to enjoy full control over the decision-making and business management. 
    • It makes the company's reputation more prominent in the market and provides credibility. 
    • It is cost-effective as compared to other businesses, and has a simple registration for OPC. 

    Disadvantage:

    • OPCs are restricted to the number of OPCs per person. 
    • This process is similar to that of a private limited company, which increases the administrative burdens. 
    • It has limited funding options as compared to larger businesses or corporations. 

  • Mihir Dutta 01 October, 2025

    Kindly provide the key characteristics of a One Person Company?

    • S
      Savetaxs 01 October, 2025

      The characteristics of a one-person company are: 

       

      • The OPC can only be started by an Indian citizen and resident of India and can become its only member.
      • The nomination is designated at the time of registration. A person cannot start or join than one OPC. 
      •  In the OPC, minors cannot hold shares, and they are not able to become nominees or members of the OPC. 
      • OPCs cannot be incorporated into a company under Section 8 of the Companies Act. 
      • In the OPC, the corporate structure cannot be changed in the first two years of incorporation. Exception if the capital paid is more than 50 lakhs or has an average turnover of 2 crores.  
      • OPC is barred from purchasing corporate securities and non-banking financial activities.  
      • A "One Person Company" is always mentioned wherever the company name is used. 

       

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