What is One Person Company Registration in India?

Before the enactment of the Companies Act of 2013, the formation of a company in India necessitated at least two individuals. However, with the advent of this legislation, there’s a notable shift towards promoting One Person Companies (OPCs). The Companies Act of 2013 specifically facilitates the creation and operation of OPCs in India, allowing a single individual to spearhead such entities. While traditional private companies mandate a minimum of two directors and two members, a One Person Company is a departure from this norm, as it can be formed by a single person. The legal framework supporting OPCs in India is outlined in Section 262 of the Companies Act of 2013. The OPC Registration process requires the representation of the entire company by a lone director and a single member. Noteworthy is the streamlined compliance structure associated with OPCs, which imposes fewer responsibilities compared to traditional private companies. This legal provision offers a simplified avenue for individuals looking to establish and operate companies independently in India.
Features of One Person Company in India
Following are some important features of One Person Company in India:

1. Simple Succession:

Although the company’s everyday operations are managed by a single person, OPC offers opportunities for eternal succession. Following the death of a company member, the nominee can administer the business.

2. Limitation of Liability:

A one-person company member has limited liability. Because OPC is a registered corporation, it is treated as a separate legal entity, providing its members with greater protection. Members’ liability is restricted to their shares, therefore they are not accountable for any losses incurred by the firm. In the event of bankruptcy, creditors may sue the corporation rather than the director for procuring the company’s debt.

3. Shareholder and sole directorship:

In a one-person company, a single member serves as a director and is responsible for managing the company’s day-to-day operations. There is no need for an executive director to oversee daily operations in this situation. A single member is more than adequate and serves as a shareholder with full responsibility.

4. Ownership of Real Estate:

Because the OPC is considered a separate legal organization, the individual can possess company property and other assets in their name. Other people cannot claim the properties, which include machinery factories, residential property, structures, and other assets. The OPC has the legal authority to acquire land directly in its name.