This form of organization is best suited for sole proprietorship business in the high risk business world as he gets certain amount of insulation from these risks. Only a person (a natural person) who is a citizen and a resident in India can form a One Person Company (OPC). The shareholder has to have a nominee who will take over the business in case of death or incapacity of the sole shareholder.

Advantages

• Mainly it offers the safety of limited liability of Companies to a sole business owner
• He can be the sole owner and director and does not need another person as director of shareholder. While he can have up to 15 directors

Disadvantages

• A person shall not be eligible to incorporate more than a single OPC or become nominee in more than one such company
• There is a threshold limit of Rs. 50 Lakhs of paid up share capital and Rs 2 crore annual turnover. Once these limits are breached the OPC will have to convert to Private limited or Public Limited Company
• The OPC cannot be converted to any other form of business unless 2 years have elapsed from the date of incorporation or condition mentioned above has exceeded

One Person Company Registration
Starts at Rs 12500/-

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