The One Person Company [OPC] is a new kind of business format, introduced in India in 2013. It enables an Entrepreneur to give a corporate look to his Sole-Proprietory form of business. One can say its hybrid form of Sole-Proprietor and Company form of business.
Its Main Features can be listed as below -
1) Single Shareholder and Director- Only a natural person, who is an Indian citizen above 18 years and resident in India shall be eligible to incorporate a One Person Company by becoming the sole shareholder as well director of the company. Explanation: The term "Resident in India" means a person who has stayed in India for a period of not less than 182 days during the immediately preceding one calendar year.
He can appoint as many as 15 other directors in the company.
2) Nominee for the Shareholder - The Single Shareholder or promoter has to nominate another person who shall become the shareholder in case of his death/incapacity. Such nominee shall give his/her consent for being appointed as the Nominee for the sole Shareholder. Only a natural person, who is an Indian citizen and resident in India shall be a nominee for the sole member of a One Person Company.
3) Voluntary Conversion - An OPC cannot convert voluntarily to any kind of other company unless two years have expired from the date of incorporation of One Person Company.
4) Mandatory Conversion - At any point of time if the paid up share capital of the company is increased beyond Rs.50 Lakhs or its average annual turnover during the relevant period exceeds Rs.2 Crores, then the OPC has to invariably file forms with the ROC for conversion in to a Private or Public Company, with in a period of Six Months on breaching the above threshold limits.