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OPC Private Limited
Company
Overview
The concept of One Person Company (OPC) in India was introduced through the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a company by allowing them to create a single person entity. Any person who is an Indian citizen and resides in India shall be eligible to incorporate a One Person Company (hereafter called OPC).

The term "Resides in India" means a person who has stayed in India for a period of not less than 182 days during the immediately preceding one calendar year. Similar to a Company, an OPC is a separate legal entity from its members, offers limited liability protection to its shareholders, has continuity of business and is easy to incorporate. An OPC allows a single entrepreneur to run a business with Limited Liability protection.

However, OPCs have a few limitations: Every OPC must nominate a nominee director in the MOA or AOA who will become the owner of the OPC in case the promoter director is disabled. An OPC must be converted into a PLC in case the paid up share capital of an OPC exceeds fifty lakh rupees or it crosses an annual turnover of two crore rupees and must file audited financial statements with the Ministry of Corporate Affairs (MCA) at the end of each financial year (FY).
Hence it’s important for the entrepreneur to carefully consider the features of an OPC prior to incorporation.