One Person Company

A newly introduced concept under the Companies Act, 2013. A promoter wanting to have a corporate identity and still wanting to retain the full ownership of the shares/control including administration of the company is now entitled to form One Person Company (OPC). In such company, only one person can hold all the shares and manage the affairs of the company. No person is eligible to form more than one such companies. Such companies are not allowed to carry out Non-Banking Financial Investment activities. OPC can be converted into Private Limited or Public Limited companies and vice-versa. Only Indian citizen and person resident in India are presently eligible to incorporate One Person Company.

Taxation: One Person Company

One Person Company would be taxed at the maximum marginal rate.

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