◉ The total number of active One Person Companies (OPCs) in India were 67,168 as on 30th April, 2025. The collective paid up capital of 67,168 OPCs was INR 895.88 crores.
◉ 1,531 number of new One Person Companies were registered during the month of April 2025. The collective paid up capital of 1,531 OPCs was INR 13.92 crores.
◉ The concept of "one person company" was introduced in India in the year 2013 through the enactment of the Companies Act, 2013.
◉ A natural person, who is an Indian citizen and a resident in India can incorporate a One Person Company in India. A person is allowed to incorporate only one OPC, not more than that.
◉ The person in whose name the OPC is incorporated is the sole shareholder of the company. A OPC cannot have more than one shareholder.
◉ A OPC shall have at least one director, and can have a maximum of 15 directors. It may appoint more than 15 Directors after passing a special resolution. The sole shareholder shall be deemed its first director until a director(s) is/are duly appointed as per the company law.
◉ Although a OPC's organization structure is similar to that of a proprietorship concern, however, the risks faced by a proprietor are mitigated in a OPC.
◉ A OPC has a separate legal entity from its sole shareholder, whereas a proprietorship concern does not have a separate legal entity from its proprietor. That means the litigations and liabilities do not get attached to the personal assets of the sole shareholder in a OPC.
◉ A OPC has a perpetual succession, that means - the death of it sole shareholder does not affect the existence or continuity of the company. Whereas, the death of the sole proprietor in a proprietorship concern may lead to the dissolution of the concern.
◉ The sole shareholder/member has to nominate a person as his/her nominee. The nominee will become the sole member of the OPC in the event of the death of the sole shareholder or his/her incapacity to contract.
◉ In order to clearly identify a OPC from other companies, the letters ‘OPC’ is suffixed with the name of One Person Companies. E.g. A1B2 Technologies (OPC) Private Limited.
◉ A minor (i.e. a person under the age of 18 years) cannot be a member or a nominee of the OPC or hold share with beneficial interest.
◉ A OPC cannot carry out Non-Banking Financial Investment (NBFC) activities neither can invest in securities of any other body corporate.
◉ There is no minimum paid-up capital requirement for a OPC during incorporation. Where the paid-up share capital of a OPC exceeds Rs. 50 lakh and its average annual turnover during the preceding 3 consecutive financial years exceeds Rs. 2 crore, it shall cease to be entitled to continue as a One Person Company, then the OPC has to mandatorily convert itself into a private or a public company.
◉ A OPC cannot be incorporated or converted into a company under section 8 of the Companies Act, 2013.
◉ One of the key advantages of incorporating a OPC is minimal compliance and paperworks by the company. The concept of OPC is quite helpful for solopreneurs, service providers, professionals, small scale businessmen, traders with low risk taking capacity, and a variety of artisans who would like to work independently with freedom.
You have written that a resident in India can only incorporate a OPC. What does resident in India mean here?
ReplyDeleteHere, the term “resident in India” means a person who has stayed in India for a period of not less than 120 days during the immediately preceding financial year.
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