- Newly introduced concept in the Companies Act, 2013
- There can be only 1 member in an OPC
- Authorized Share Capital should be minimum of Rs. 1,00,000/-
- The Company is a Separate Legal Entity means an ‘Artificial Judicial Person’
- DIN and Digital Signature Certificate for the member is essential
- It must be covered into a Private Limited Company if its turnover exceeds Rs. 2 Crores
- There must be a nominee director to be introduced in MoA and AoA
- The word ‘OPC’ is required to be mentioned after the name of the Company
- The Entrepreneur has to carefully analyze their needs before starting an OPC.
Key features of a One Person Company
- It is a Separate Legal Entity and enjoys wide legal capacity
- It can own a property, incur debts, raise funds, etc.
- The members have no liability to the creditors for such debts
- The Company is not affected by death or unsoundness, unlike humans. Thus, it is having an uninterrupted existence until it gets dissolved. It remains to live irrespective of changes in its membership
- A Company can borrow funds from markets and financial institutions. It can raise funds through issuing debentures (secured / unsecured) and it can also accept deposits from the public. Banking and Financial Institutions rely more on corporate entity rather than Partnership and Proprietorship concerns to grant financial assistance.
- Shares of Company can easily be transferred to any other person.
- Members’ liability towards the company is limited to a amount of shares held with them. This means they are legally responsible for the debts of a company limited by the number of shares held by them.
- Private Assets remain secured.