About One Person Company Registration
The concept of One Person Company (hereinafter referred to as OPC) in India was introduced through the Companies Act, 2013 which allows single founders to enjoy the status of a company. Forming an OPC helps to have full control over affairs without the intervention of the third party while keeping the liability limited.
A One Person Company (OPC) as a company that has only one person as to its member. Furthermore, members of a company are nothing but subscribers to its memorandum of association, or its shareholders.
As per Companies Act, 2013, OPC is defined as a company having one person as its member meaning thereby OPC is effectively a company that has only one shareholder as its member. The Act introduced several new concepts that did not exist. One of them was the introduction of One Person Company concept. A One Person Company is usually created when there is only one founder or promoter for the business.
A single person can form an OPC by subscribing his or her name to the memorandum of association and fulfilling the other requirements which are prescribed by the Companies Act, 2013.
One of the biggest advantages of an OPC is that there can be only one member in an OPC, while a minimum of two members is required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership.
Similar to a Company, an OPC is a separate legal entity from its members, offers limited liability protection to its shareholders, has continuity of business and is easy to incorporate.