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Relatively a new concept, the One Person Company (OPC) form of business brings the charms of corporate framework into sole proprietor-run organizations.Introduced recently in the Companies Act, 2013 [No. 18 of 2013], OPC provides total control to the single promoter over the entire company and limits promoter’s liability to business contributions. Promoter becomes the only shareholder while there may be more directors; there is no possibility of raising funds through equity.Performing as a hybrid between sole proprietorship and corporate forms of business, OPC enjoys relaxations and concessions under the Act.

Upon crossing an Annual turnover of more than Rs.2 crores, OPC needs to be converted into a private or public limited company, within a 6-month time limit.Allowing single person financial entity status, OPC requires a mandatory nominee director who in the event of disablement of the original director—will become the owner of the OPC.Entrepreneurs may be able to conduct their business activities with complete control while enjoying the features of companies in this type of business.

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