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One Person Company (OPC) is an innovative step towards leveraging extended benefits to individual entrepreneurs seeking benefits of Private limited companies.
A new concept has been introduced in the Company's Act 2013, about the One Person Company (OPC). In a Private Company, a minimum of 2 Directors and Members are required whereas in a Public Company, a minimum of 3 Directors and a minimum of 7 members. A single person could not incorporate a Company previously.


  • Section 2(62) of the Companies Act, 2013;
  • Companies Incorporation Rules, 2014 (Rule 3 to Rule 7); and
  • Schedule 1 of Companies Act 2013.


AS PER SECTION 2(62) OF COMPANIES ACT 2013 READ WITH RULE 3 OF COMPANIES INCORPORATION RULE, 2014; One Person Company" means a company which has only one person as a member.

  • Only a natural person who is an Indian citizen and resident in India-
  • Shall eligible to incorporate an OPC:
  • Shall be a nominee for the sole member of an OPC

The term "resident in India" means a person who has stayed in India for a period of not less than one hundred and eighty-two days during the immediately preceding financial year.
While counting the number of days of stay of a director in India for the financial year 2018-2019, any period of stay between 01.01.2018 till the date of notification of this rule shall also be counted.
A natural person shall not be member of more than a One Person Company at any point of time and the said person shall not be a nominee of more than a One Person Company.


  • One of the main advantages of OPC is that it has more opportunities with limited liability as the liability of OPC is limited to the extent of the value of share it holds.
  • OPC is a separate legal entity and capable of doing everything that a businessman wants to do.
  • One Person Company can easily raise funds.
  • OPC enjoys little compliance burden as compared to a private limited company.
  • OPC always enjoy an increased trust and reputation in the Industry.
  • An OPC can be limited by guarantee or limited by shares or an unlimited company.
  • One Person company need not hold any annual general meeting each year.
  • Provisions relating to meetings and quorum do not apply to them.
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