Q.What is a One Person Company (OPC)?

The Companies Act, 2013 allows a single individual to form a company, something the earlier Companies Act, 1956 did not permit.

The One Person Company (OPC) is a category introduced by the Companies Act, 2013 to encourage individual entrepreneurs to enjoy the advantages of the company form of organisation without needing to find a co-promoter.

Under Section 2(62) of the Act, an OPC is a company that has only one person as a member. Unlike an ordinary private company, which needs a minimum of two members, an OPC can be incorporated and run by a single individual, who is both the sole shareholder and, typically, the sole director, though the Act requires the sole member to nominate another person as a nominee, who would become the member in case of the original member's death or incapacity. …

Students sometimes think an OPC has no director at all since it has only one member — in fact it still needs at least one director (usually the sole member) …