One Person company is a revolutionary concept introduced by the Companies Act,2013. The One Person Company (OPC) is a sort of privately-owned business having just a single member. The OPC is incorporated like a Private Limited Company as a separate legal entity from its promoters, where there is only one member and an invitation to the public for subscription of the securities of the company is prohibited. As an OPC is a separate legal entity distinct from its promoter, it has its own assets and liabilities. Thus, the promoter is not personally liable for the debts of the company.
OPC might be shaped either as a company constrained or limited by shares or an unlimited liability company. The OPCs, unlike any other companies, must mention a nominee with the nominee’s written consent while filing with Registrar of companies.Â This nominee shall become a member in case the sole director is disabled. A characteristic individual should not be an individual for more than One OPC and the said individual might not be a nominee of more than one OPC. If the OPC is willing to add Shareholder all it needs to do is an alteration of memorandum of association and file, it before ROC.