FinTax24

Glossary · Corporate Law

OPC

One Person Company — a private company with only one member (Section 2(62) of the Companies Act, 2013).

Introduced in 2013, an OPC allows a single individual to incorporate a company with limited liability. The sole member must nominate a nominee who will become the member in case of death or incapacity. OPC cannot convert voluntarily into a private company if its paid-up capital exceeds ₹50 lakh or average annual turnover exceeds ₹2 crore in the immediately preceding three financial years. It cannot carry out non-banking financial investment activities or act as an NBFC.

Examples

A solo consultant incorporates WebCraft OPC to bill clients in the company name, separate from his personal identity.
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