What is a One Person Company (OPC)?
A One Person Company (OPC) is a company with a single shareholder, introduced so a solo founder can get the limited-liability and separate-legal-entity benefits of a company without needing a second member. It requires one director and a nominee (who takes over if the sole member dies or is incapacitated). Compliance is lighter than a Private Limited.
1Key features
One member who is also usually the sole director, plus a mandatory nominee. The OPC has limited liability and perpetual succession. Since 2021, there's no mandatory conversion threshold, so an OPC can grow freely.
2When to choose it
OPC suits a single founder wanting a corporate structure and limited liability without partners. If you plan to raise equity or add co-founders, a Private Limited is usually better, since an OPC can't issue shares to outside investors.
Frequently asked questions
What is the difference between OPC and a Private Limited company?
An OPC has a single member and lighter compliance, but can't raise equity from investors. A Private Limited needs at least two members and has heavier compliance, but can issue shares and onboard investors and ESOPs.
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General information for AY 2026-27, not professional advice. Laws change with each Finance Act, notification or amendment and depend on your specific facts — verify the current position with a licensed CA or advocate before acting.