One person company (OPC) is a new form of business introduced by Companies Act, 2013. It is hybrid form of business where a sole proprietorship concern can get a corporate outlook.
An OPC is a hybrid structure, wherein it combines most of the benefits of a sole proprietorship and a company form of business. It has only one person as a member who will act in the capacity of a director as well as a shareholder. Thus, it does away with the hassles of finding the right kind of co-partner/s for starting a business as registered entity. The best part is, legal and financial liability is limited to the Company and not the member.
A single shareholder who can also be the sole director can start an OPC.
OPC gets the status of a separate legal entity.
OPC has to comply with fewer rules and regulations when compared to other forms of companies.
The sole shareholder gets to enjoy the limited liability feature of a company.