One Person Company

An OPC is effectively a company that has only one shareholder as its member. Such companies are generally created when there is only one founder/promoter for the business.

Ownership

An OPC is owned and managed by a single individual. This structure is ideal for those who wish to have complete control over their business without the need for additional partners or shareholders.

Liability

In an One Person Company (OPC), the business owner's liability is limited. This means that the owner's personal assets are protected, and they are not personally responsible for the company's debts and obligations. In case of financial troubles, only the invested capital is at risk

Tax Advantages

OPCs enjoy tax benefits similar to other types of companies. They are subject to the corporate tax rate, which can be more tax-efficient than individual income tax rates, especially when the company's income exceeds a certain threshold.

Management

In an OPC, there is a single owner who also serves as the director. This individual has complete ownership and control over the company. They make important decisions, set the company's strategic direction, and manage day-to-day operations.

Benefits of One Person Company:
Ease of Formation:Simplified and quick setup with minimal compliance requirements.
Single Ownership: One person can be the shareholder and director.
Profit Sharing: Profits are typically shared among partners based on their ownership interests or as defined in the partnership agreement. This flexibility allows for customized profit-sharing arrangements.
Single Ownership: One person can be the shareholder and director.
No Minimum Capital: No requirement for a minimum authorized capital.