Mayank vashishta

The man who will use his skill and constructive imagination to see how much he can give for a dollar, instead of how little he can give for a dollar, is bound to succeed.”  Henry Ford

Not old in some countries but new in India, One person company is a form of business, introduced by Companies act, 2013, enabling sole proprietors to enter into corporate world.

It is like forming a company with the soul of proprietorship and privileges of a private limited company but with fewer requirements.

One person company has only one shareholder/member that give him to run the business of the company solely on his decision, i.e., one Person Company gives MONOPOLY IN MANAGEMENT. Although, a maximum number of 15 directors can be appointed in one person company but it’s a benefit as more Directors can run management smoothly, and is not any legal obligation.


  • One person company (OPC) can only be incorporated as a Private limited company.
  • OPC can have only one person as its shareholder/member.
  • The minimum paid up share capital is Rs. 1,00,000.
  • OPC does not requires to hold Annual General Meeting.
  • If the Articles of Association do not contain the name of the first director, member of the One Person Company will be deemed to be the first director till the time director(s) is duly appointed.
  • The subscriber to the memorandum of association of a One Person Company shall nominate a person, after obtaining prior written consent of such person, who shall, in the event of the subscriber’s death or his incapacity to contract, become the member of that One Person Company.
  • Only one director is sufficient to sign the Financial Statements/Directors’ Report.
  • A person shall not be eligible to incorporate more than OPC or become nominee in more than one such company.
  • A minor cannot become a member or nominee of the OPC or can hold share with beneficial interest.
  • OPC can be incorporated for charitable purpose.


  • First obtain Digital Signature Certificate for the proposed Director(s).
  • Then obtain Director Identification Number [DIN] for the proposed director(s).
  • Then select suitable Company Name(six names, in number of priority), and make an application to the Ministry of Corporate Office for availability of name.(in FORM INC-1)
  • After that draft Memorandum of Association and Articles of Association [MOA & AOA].
  • Sign and file various documents including MOA & AOA with the Registrar of Companies electronically. (via various E-FORMS)
  • Pay Requisite fee to Ministry of Corporate Affairs and also Stamp Duty.
  • Then Registrar of Companies(ROC) will scrutinize the documents.
  • Then ROC will issue Certificate of Registration/Incorporation.

One person company is better form of business than sole proprietorship as it enjoys privileges of a private limited company, but it also attracts legal obligations more than a sole proprietorship.

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One Comment


    Please accept my apologies for late reply.

    @CA Narendra soni: In case of insolvency, the liability of sole member is limited to the extent of unpaid calls on shares owned by him.

    @Sharad agrawal:
    OPC has it’s own legal identity, it can own property, can sue and can be sued in it’s own name.
    Member of OPC enjoys limited liability.
    And of-course having a corporate name will have faith of clients in the products and services of the company as it is a registered entity.

  2. CA Narendra Soni says:

    Good article. In case of insolvency, whether the liability of person who is the sole director of one person company is limited or not ?

  3. sharad agrawal says:

    Very good to share this article on OPC. I want to ask that what to ask that what other benefits can a person get in case of OPC which usually will not be available to sole proprietor.

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