OPC stands for One Person Company, a unique form of business entity introduced by the Companies
Act, 2013 to facilitate sole entrepreneurship and encourage individuals to start their own ventures with
limited liability. The concept of OPC allows a single person to form and operate a company, providing
them with legal protection and credibility similar to that of a private limited company.
Key features of an OPC include:

1. Single Ownership: An OPC is owned and controlled by a single individual who acts as
both the shareholder and director. This individual enjoys limited liability, meaning their
personal assets are protected in case of business liabilities.

2. No Minimum Capital Requirement: Unlike some other forms of companies, an OPC in
India can be incorporated without any minimum capital requirement. This makes it
accessible for small entrepreneurs and startups to initiate their business ventures with
ease.

3. Nominee Director: As per the Companies Act, 2013, every OPC must nominate a person
as the nominee director in the MOA (Memorandum of Association) and AOA (Articles of
Association) of the company. The nominee director will take over the management of
the company in case the sole owner-director becomes incapacitated or passes away.

4. Conversion and Compliance: An OPC can be converted into a private limited company if
its turnover exceeds prescribed limits or voluntarily by the owner. It is required to
comply with statutory requirements such as annual filings, conducting audits (if
applicable), and adhering to corporate governance norms as per the Companies Act.

OPCs are particularly beneficial for solo entrepreneurs who wish to establish a formal business entity
while limiting personal liability. They offer advantages such as easier access to loans, contracts, and
enhanced credibility in the market. However, they also come with specific compliance obligations to
ensure transparency and regulatory adherence, contributing to the overall governance and stability of
the business environment in India.