Company Law Essentials: OPC, DIN, KYC, CSR, Prospectus and Corporate Governance
Posted by Anonymous and classified in Law & Jurisprudence
Written on in
English with a size of 14.41 KB
One Person Company (OPC)
Meaning: A One Person Company (OPC) is a company that has only one person as its member. It is a type of private company under Section 2(62) of the Companies Act, 2013.
Features of OPC
- Single member: It is formed by one person.
- Separate legal entity: The company has a legal identity separate from its owner.
- Limited liability: The member's liability is generally limited to the unpaid amount on shares held.
- Nominee: The member must nominate another eligible person.
- Perpetual succession: The company can continue to exist despite a change in membership.
- One director minimum: An OPC must have at least one director.
Advantages
- Easy to manage with one owner.
- Provides limited liability protection.
- Gives the business a separate legal identity.