This document discusses One Person Companies (OPCs) in India. It notes that an OPC allows a single individual to incorporate a private company. To form an OPC, there must be a minimum of one director and shareholder, who can be the same person. Only natural persons who are Indian citizens resident in India are eligible to be OPC members or nominees. The key advantages of an OPC are that it provides limited liability, requires minimum capital of Rs. 100,000, and has relatively easy incorporation and operation processes compared to other company types. Some limitations are that it has more formalities than a sole proprietorship and decisions are made by just one member.

1. BUSINESS SEMINAR
TOPIC: OPC ( One Person Company)

2. OPC ( One Person Company)
● One person company is a private company which can be
incorporated with one member only.
● For formation of OPC it requires a minimum one director
and one shareholder.The same individual can be the
director and shareholder.
● Through OPC a single person can set up his/her own
company .However as per the Company Act of 2013,only a
natural person who is an indian citizen and Resident in
india is eligible as a member and nominee of OPC.

3. FEATURES OF OPC
1.Incorporation: (OPC) is incorporated as private limited company.
2. Membership :
● It must have one member at any point of time and may have only one
director.
● The member should be a natural person who is an indian citizen and
Resident in india is eligible as a member and nominee of OPC.
● No minor shall become member of OPC

4. 3.Appointment Of Nominee:
● To maintain the continuity the only members should
appoint a nominee the name of the nominee must be
indicated in the memorandum with prior written consent of
the nominee ,the written consent must be filled with the
Register of company.
● No minor shall became the member of OPC
4. Perpetual Succession:
● In case of death or inability of the main member to
continue the nominee must become the main member of
OPC

5. 5.Separate Legal Entity:
● The company and shareholder are two different entities for
all purposes.
6.Share Capital :
● Minimum paid up share capital required to incorporate
OPC 1,00,000
7.Limited Liability:
● The risk in OPC are limited to the extent of the value of
shares held by the member of the company.

6. 8. Statutory Compliances:
● Incase if there is more than one director then it is
obligatory for OPC to call for two meetings in a
year,however in case if there is only one director there is
no need to call for meetings.The member must maintain
“Minutes of Meetings Book”)

7. ADVANTAGES OF OPC
❖ Economic Entity:For all such individuals who have the
capacity of starting a business and OPC provide them an
opportunity to create a single economic entity.
❖ Minimum capital requirement: OPC requires minimum
capital of 1,00,000 to start business operations.
❖ Easy to incorporate and operate :OPC requires less
paperwork and very few compliances as compared to private
and limited company.

8. ❖ Limited Liability: OPC allows sole proprietorship and
entrepreneurs enjoy the advantages of limited liability and
the benefit of separate legal entity as well.

9. LIMITATIONS OF OPC(One person company)
❖ More formalities: OPC has to submit more documents and
formation involves more formalities as compared to sole
proprietorship
❖ Limited resources: OPC has limited resources as
compared to other form of organisations like private or
limited companies.
❖ Unbalanced decision : All important decisions are taken
by one member only therefore there are many chances of
the decision being unbalanced .