Considering these problems, the Government of India has introduced an inspirational concept of One Person Company (OPC). Companies Act, 2013 has introduced a concept of One Person Company (OPC). The main object behind the incorporation of OPC is to encourage new entrepreneurs to line up microeconomic business and to curtail bar on an individual to start a company, otherwise, he has to work as a sole proprietorship only.
One Person Company registration is one of the most popular and most desirable options for doing business. An OPC company can have only a shareholder and minimum one with the maximum limit of twelve directors. It has a distinct person under the law, and there is limited liability of the shareholder of an OPC. In a case of default, banks/creditors can only sell the company’s assets but not the personal assets of the shareholder. That's why, a company registration is the best option to start the business as a registered company. It is very important to start the business as a registered company because a registered company has multiple advantages from easy to register to easy to dissolve.
Today, maximum Start-ups, E-commerce, Information Technology Service Provider, and Professionals prefer registered his business as an OPC.
• Statutory Definition of One Person Company :
As per Sub-section 62 of Section 2 of the Companies Act 2013, One Person Company as “a company which has only one person as a member” where all the legal and financial liabilities are limited to the company and not its members.