A one person company means a company with a single shareholder. It can enjoy the benefits of a corporate structure without sharing the ownership with others. Following are the features of OPC.
- It is governed by Companies Act, 2013 under Ministry of Corporate Affairs.
- It can have only one shareholder
- It has a benefit of separate legal entity
- The liability of shareholder will be limited
- In OPC, statutory audit of accounts is mandatory
- Foreign investment is not allowed
- There are some post registration compliance to be followed
- There is a lock in period of 2 years for conversion of OPC into a private limited company voluntarily.
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