What is a One Person Company (OPC)?
OPC allows a single individual to form a company with limited liability. Introduced under Companies Act, 2013.
Key Features
- Only 1 director and 1 shareholder needed (can be same person)
- Nominee director must be appointed
- No minimum capital requirement
- Separate legal entity with limited liability
- Convert to Pvt Ltd if turnover exceeds Rs.2 crores
OPC vs Sole Proprietorship
- Liability: OPC = Limited | Proprietorship = Unlimited
- Legal Entity: OPC = Separate | Proprietorship = No
- Tax Rate: OPC = 22% corporate | Proprietorship = Individual slab
Annual Compliance
- Annual Return (MGT-7A) — simplified form for OPC
- Financial Statements (AOC-4)
- Statutory Audit mandatory