Companies Act, 2013 introduced this much awaited concept of One Person Company in India. One Person Company is ideal for those entrepreneurs who are confident that they can run their business alone but want status of a Private Limited Company. A One Person Company therefore enjoys status of a Private Limited Company but have separate legal entity, perpetual succession and transferability of business.
For incorporation of One Person Company there has to be a nominee Director. Nominee director is nominated in the Memorandum and Articles of Association and becomes owner of the OPC if the promoter is deceased. By nominating a director One Person Company ensures its perpetual succession. One Person Company is required to file its Annual Returns with the MCA every year. If turnover of One Person Company exceeds Rs. 2 crores in any Financial Year, it has to convert itself to a Private Limited Company.