Filling Of GSTN
A company having Only One director or one member known as One Person Company (OPC). It shall
also be important to note that Section 3 classifies OPC as a Private Company for all the legal purposes
with only one member. OPC is applicable to all the provisions related to the private company , unless
otherwise expressly excluded.
The concept of One Person Company in India was introduced through the Companies Act, 2013 to
support industrialists who on their own are capable of starting a venture by allowing them to create a
single person economic entity. One of the biggest advantages of a One Person Company (OPC) is that
there can be only one member in a OPC, while a minimum of two members are required for
incorporating and maintaining a Private Limited Company or a Limited Liability Partnership (LLP). Similar
to a Company, a One Person Company is a separate legal entity from its promoter, offering limited
liability protection to its sole shareholder, while having continuity of business and being easy to
One Person Companies are helping tremendously in increasing the overall economy of India. More and
more Entrepreneurs are coming up and setting up their business. Since, no intervention from any third
party is seen, it makes it more beneficial.
One Person Company, which is a new concept in India, already sees a big boom. A huge impact on the
economy and development of nation is expected. It gives opportunities to many and will therefore bring
creative and young minds in front of everyone. So, if you want to start up your own business, you don’t
have to worry about all the complex and tedious processes.
Though a One Person Company allows a lone Entrepreneur to operate a corporate entity with limited
liability protection, a OPC does have a few limitations. For instance, every One Person Company (OPC)
must nominate a nominee Director in the MOA and AOA of the company - who will become the owner
of the OPC in case the sole Director is disabled. Also, a One Person Company must be converted into a
Private Limited Company if it crosses an annual turnover of Rs.2 crores and must file audited financial
statements with the Ministry of Corporate Affairs at the end of each Financial Year like all types of
Companies. Therefore, it is important for the Entrepreneur to carefully consider the features of a One
Person Company prior to incorporation.