One Person Company Concept

In Indian company law, a one-person company is defined as an individual who decides to start a business on his or her own. Entrepreneurs frequently choose to operate as a one-person company in order to maintain control over decisions and work quality. These lone entrepreneurs are also referred to as “solo entrepreneurs.” Free agents, freelancers, self-employed, sole proprietors, and home-based business owners are all terms used to describe these entrepreneurs (although not all single person entrepreneurs are home-based). This is frequently determined by the professional field in which they work.

And be a one-person company does not imply that you are entirely self-sufficient. These business owners frequently partner with other companies or form alliances with other entrepreneurs or consultants. It is entirely dependent on their business requirements. The closest these organisations come to having “employees” is outsourcing basic jobs or specific project-related tasks.

One-person businesses frequently have owners who share specific features. What are the traits of a typical solo entrepreneur?

– A desire for personal freedom that allows individuals to live their preferred lifestyle.

– The desire and motivation to carry out the business plan and realise their personal goals.

– The ambition to succeed and the readiness to go the extra mile

– They are extremely enthusiastic about what they do.

What Is an OPC (One Person Company)?

Many entrepreneurs are “refugees” from giant corporations, while others prefer to be self-employed in a “one-person firm” as an alternative to a standard small business with workers and managerial responsibilities. Being laid off as a result of yet another wave of outsourcing to India can pique people’s interest in becoming self-employed, especially if they want to remain a “one-person firm.” The yearning to entirely escape from the same is heightened by the political games engaged in larger organisations. Working alone allows you to be more flexible and make decisions without having to worry about “internal political players.”

The company a man keeps might reveal a lot about him. However, under the One Individual Company (OPC) concept, a single person would create a company with the introduction of the Companies Bill 2009. This is a godsend as a structure for professionals, individual businesses, SMES, and NGOs – the proposed Section 171 also extends to Section 25 Companies – because it protects the shareholders’ personal assets from liability.

The new Corporation Bill envisions a new entity in the form of a one-person company (OPC), while also empowering the government to establish a simpler compliance environment for small businesses.The planned incorporation of a one-person firm into the legal system will stimulate corporate corporatization and entrepreneurship. In India, an entrepreneur must locate another individual to help him utilise his abilities through the formation of a company, unlike in the United Kingdom, Australia, Singapore, Pakistan, and other countries, a single person can start a firm.

OPC is a single-shareholder corporation with sole legal and financial responsibility for the company.

OPC India is one of the world’s most populous

Indian law currently stipulates that there must be at least two shareholders. That is why each individual shareholder must own one share as a nominee even for wholly-owned subsidiaries.

In India, sole proprietorship firms (in which just one person operates the business), partnerships (involving two or more people), and companies are the most common types of commercial organisations permitted (both private and public where it is possible for many individuals to own the business by subscribing to its shares).

Most small businesses are owned and operated by a single person;however, they are now forced to add another stakeholder. This raises the stakes for compliance; for example, shareholder meetings now demand the attendance of both shareholders.Under the One Person Company (OPC) idea, a single person will form a company with the introduction of the Companies Bill 2009. Small single entrepreneurs who are now operating under a proprietorship model will be assisted by OPC to transition to a company form, which will provide them with the benefits of restricted liability while requiring little compliance.

The JJ Irani Expert Committee in India proposed that a one-person company be formed (OPC). It has been suggested that such an entity be given a simplified legal regime through exemptions, so that the sole proprietor is not forced to waste time, energy, and resources on procedural issues.

The following suggestions were made by the committee:

OPC can be set up as a private business with just one member and at least one director.In the event that the lone person dies or becomes disabled, adequate safeguards should be given by appointing a nominated director. When the original director passes away, the company’s business will be managed by the nominee director until the shares are transferred to the legal heirs of the deceased member. To distinguish one-person corporations from other businesses, the suffix ‘OPC’ will be added to their names.

In other countries, what is the status of the OPC?

Various nations (including China, which approved it in October 2005) allow this type of business company, in which the promoter is both the director and the shareholder.

The modified Pakistani company legislation allows a single person to incorporate a single-member company by making a nomination in the appropriate form with the registrar at the time of formation, naming at least two individuals to function as nominee director and alternate nominee director.

A single-member Limited Liability Company can be formed and operated in numerous states in the United States (LLC).

In China, a single person is permitted to file for the formation of a limited liability corporation with a minimum capital of one million Yuan. The modified Chinese law requires the owner to pay the investment capital all at once and prohibits him from starting a second company of the same type.

In most countries, company law allows a single-member company to have more than one director and exempts such firms from holding annual general meetings (AGMs), albeit records and documentation must be kept.

Aspects such as nomination in the event of the death of a lone member and changes in the firm’s status are also discussed.


OPCs are necessary because they provide people with an outlet for participating in economic activity, which can be done by forming an economic person in the form of a corporation. However, some have criticised the formation of such a firm, claiming that it could allow for the escape of public funds and tax duty by an individual.Appropriate precautions can be taken to alleviate the anxieties. The law governing the establishment of corporations should address a number of specific issues, including:

Is a one-person firm limited to an individual or even a legal entity? Is it possible for a single member to start a corporation with no limit on paid-up capital or a cap? Is it necessary to transform a one-person firm into a private/public limited corporation if its turnover exceeds specific thresholds?

Nonetheless, the move is intended to make the process of starting a business easier for aspiring entrepreneurs. Similarly, small business owners that operate under the proprietorship model could convert to OPCs, which would provide them with less liability and eliminate the need for onerous compliance procedures. On the other side, OPCs are projected to attract investors who were previously hesitant to risk their money in a single proprietorship due to the infinite liability. Starting a business is becoming easier, which might be a windfall for all types of small businesses. It may also provide a chance for a large number of non-resident Indians (NRIs) and people of Indian origin (PIOs) to establish markets in India.

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.


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The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.

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In the year 2021, we wrote about 1000 Inspirational Women In India, in the year 2022, we would be featuring 5000 Start Up Stories.

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