In a One Person Company (OPC) there is just this single promoter who has complete control over the affairs of the company and is the sole shareholder and director of the company. The major advantage as compared to a sole proprietorship is that the director and the OPC shall have separate identities of their own making the person’s liability limited only up to his investment in the company. Another advantage is that even after the death of the director, a nominee director appointed by the director shall handle the affairs of the company. A person can be member in only one OPC but can be a nominee in other OPC but if by virtue of death of the previous member he becomes member in another OPC as well, then he will have to withdraw his membership within 180 days from either of the OPC.

As per the Companies Act, if the paid-up share capital of an OPC exceeds fifty lakh rupees or its average annual turnover of immediately preceding three consecutive financial years exceeds two crore rupees, then the OPC has to mandatorily convert itself into private or public company.