One Person Company (OPC) is a type of legal business entity which can be incorporated by only Person (Member) and where liability of member's is limited. Only natural person who is also an Indian citizen and resident in India can Incorporate a One Person Company. A company being a legal person is distinct from its directors and shareholder, Creditors of the company cannot claim the debt, from the property of Directors and Shareholder of One Person Company.
Individual entrepreneurs can now start their own ventures with a formal business structure by Incorporating OPC. By Incorporating such company small businessmen and traders, can get credit, bank loans, access to market and also gets legal protection available to companies.
Young entrepreneurs alone can individually Incorporate/Register a One person Company and can take advantage of having access to credit facilities from bank, limited liability protection, name protection, and that to without involving or sharing profits with a second person in the company
Corporations and industries want to do business with an incorporated entity instead of sole traders. Limited Company are considered to be more established and also creates a professional and corporate image.
Limited Liability Protection
Directors and shareholder are not responsible to pay the debts of the company from their personal assets even if the company is declared insolvent. It has the words ‘OPC Private Limited’ as part of its name.
Never ending characteristic
Ever if the Shareholder or Directors go away from the company, “One person company” continues its existence.
Name of the Company is protected
After “Registering One Person Company” with the registrar of companies, the name of the company gets protected. Registrar of companies will not accept registration of another company, which is similar, identical or resembling with an existing name.
A company being a legal person is distinct from its directors and shareholder. Creditors of the company cannot claim the debt, from the property of Directors and Shareholder.
Single person can start a company
An “One Person Company” can be incorporated by only one person as Individual.
No Criteria of minimum paid up capital
No minimum capital is required to start an "One person company".