One Person Company

A new concept was introduced in 2013 in the Companies Act under Section 2(62) wherein a company can be formed with just 1 Director and 1 member, where the compliance requirements are lesser than that of a private company and this type of company is called a One Person Company (OPC). In OPC the person has Limited Liability for the shares he/she hold in the incorporated company, while also being the only shareholder. The primary reason for choosing OPC registration is that the a single person having a business idea that can represented in a corporate format and the idea is enough to start the company and is especially helpful when ine has limited resources and no time to find more partners.