One person company allows a single entrepreneur to operate entity with limited liability protection. The concept of One Person Company in India was introduced through the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity.

One of the biggest advantages of a One Person Company (OPC) is that there can be only one member in an OPC. As One Person Company has just one member, it is necessitated by the law for the single member of the Company to designate another person in the Memorandum of Association, who on the event of subscriber’s death or incapacity shall become the person to contract.

This mechanism provides an adequate safeguard to ensure continuous existence of the entity even in case of incapacitation of the single member. If an OPC exceeds a turnover of Rs. 2 crores or contains a paid up capital higher than Rs. 50 lacs, it should became a personal or public company at intervals of six months.

It will be an separate legal entity as a private limited company having more than 1 director or shareholder.