A One Person Company (OPC) is a distinct business structure that combines the flexibility of a sole proprietorship with the legal and operational advantages of a private limited company. Introduced under the Companies Act, 2013, the OPC framework enables a single entrepreneur to establish a corporate entity with limited liability, separate legal status, and perpetual succession—without the need for additional shareholders. Governed by Section 3(1)(c) and defined under Section 2(62) of the Companies Act, 2013, an OPC may be incorporated by a single eligible individual for any lawful business purpose. It is treated as a private company and can operate with a single member and director, while enjoying many of the benefits available to other corporate entities. The OPC structure is particularly well suited to entrepreneurs, consultants, professionals, freelancers, and startups seeking a formal business structure with enhanced credibility, limited liability protection, and greater opportunities for business growth. By providing a structured corporate framework, an OPC enables business owners to build a scalable enterprise while maintaining complete ownership and control.

As per Section 2(62) of the Companies Act, a One Person Company (OPC) is a type of company that has a single individual as its sole member. In an OPC, the individual promoter has complete control and authority over the company, acting as both the shareholder and director. However, a nominee director is also appointed, who has no authority unless the actual director is unable to perform his duties. Furthermore, OPCs are required to follow specific regulations and guidelines outlined in the Memorandum of Association (MoA) and Articles of Association (AoA). These documents lay out the rights and responsibilities of both the company and its member, providing a framework for the operation of the Company. Compliance with these rules is essential to ensure that the OPC functions smoothly and effectively.