What is One Person Company?
A One Person Company (OPC) is a relatively new type of business structure that allows a single individual to own and operate a company with the benefits of limited liability and separate legal identity. It was introduced to encourage entrepreneurship among sole proprietors who want to formalize their business without the need to partner with others. An OPC combines the flexibility of a sole proprietorship with the advantages of a private limited company, such as legal protection for personal assets, easier access to credit, and enhanced credibility in the eyes of customers and investors. The sole owner acts as both shareholder and director but is required to nominate another person as a backup in case of death or incapacity. The company can enter into contracts, sue or be sued, and continue to exist independently of the owner.