The One Person Company (OPC) is an innovative business structure that was
introduced in India to encourage single entrepreneurs to set up and manage their own businesses while
enjoying the benefits of limited liability. In an OPC, there is only one shareholder and one director,
which is ideal for individuals who wish to start a business alone but still need the protection and
formalities of a company. This structure allows an entrepreneur to retain full control over the business
while enjoying limited liability, meaning that the personal assets of the owner are not at risk in case
the company incurs debts or liabilities. The OPC must be incorporated with a minimum capital, and the
owner needs to nominate a nominee who will take over the company in case of the owner's death or
incapacity. This model gives small business owners and solo entrepreneurs the ability to access the
advantages of a Private Limited Company while keeping operational simplicity and reducing compliance
requirements compared to a full-fledged company. Moreover, an OPC can later be converted into a Private
Limited Company as the business grows and the owner wishes to bring in additional stakeholders or expand
operations.