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G.K.Kedia & Co.

OPC Formation


The introduction of One Person Company (OPC) under the Companies Act 2013 has been made with intent to encourage corporatization of micro businesses and entrepreneurship by providing a simpler legal regime so that the small entrepreneur is not compelled to devote considerable time, energy and resources on complex legal compliances. This will not only enable individual capabilities to contribute economic growth, but also generate employment opportunity.

What is an OPC?
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. Now, there would be no need to find the right kind of co-partner/s for starting a business as registered entity. The most important feature is that under OPC, the legal and financial liability is limited to the Company and not the member.

Legal Status of OPC
Section 2(62) defines OPC as a Company which has only one person as a member.

Incorporation of OPC
The process of incorporating an OPC is almost similar to that of a private limited company except with some minor differences.
Relaxations available to OPCs in comparison to general Private Limited Companies

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