Q.What is a One Person Company (OPC)? Explain its meaning and any two of its features.

An OPC, introduced by Section 2(62) of the Companies Act, 2013, is a company with exactly one member — designed to give a single entrepreneur the company form's benefits without needing a second member.

Meaning. Section 2(62) of the Companies Act, 2013 introduced the One Person Company (OPC) — a company having only ONE person as its member. It was created specifically so that a single entrepreneur could enjoy the company form's advantages (separate legal entity, limited liability) without needing to find a second member, as a private company otherwise requires under Section 2(68).

Feature 1 — Minimum one director. Unlike a private company, which needs at least 2 directors, an OPC needs only 1 director — reflecting that there is only one member behind the entire company.

Feature 2 — Mandatory nominee. Because an OPC has only one member, the Act requires that member to nominate another person (obtaining that person's prior written consent) who will become the member of the OPC in the event of the original member's death or incapacity to contract — ensuring the company's perpetual succession is not left unresolved by having just a single human member. …