Government of India | NITI Aayog

OPC

One Person Company (OPC), as the name suggests, consists of only one promoter/founder. It was introduced in the Companies Act, 2013 so as to encourage self-employment while also having the necessary legal backing for the same.

OPC requires one member (member refers to someone who subscribes to Memorandum/has their name in the Register of members/holds shares of the company with their name in the records of depository) and one nominee, who becomes the member of the company in case of death or any other incapacity of the original member. 

The Act prescribes the following characteristics for an OPC:

  • OPC may be registered as a private Company with one member and may also have at least one director;
  • Adequate safeguards in case of death/disability of the sole person should be provided through appointment of another individual as Nominee Director. On the demise of the original director, the nominee director will manage the affairs of the company till the date of transmission of shares to legal heirs of the demised member.
  • Letters ‘OPC’ to be suffixed with the name of One Person Companies to distinguish it from other companies