One Person Company means which has only one director who will act as shareholder too. 

The concept of One Person Company enables you to carry on the business in the Sole-Proprietor form of business but through a Corporate Framework. One Person Company is a hybrid of Sole-Proprietor and Company form of business and has been provided with concessional/relaxed requirements under the Act.

Like Sole proprietor, it is being taken care by only one owner. There is no requirement of two directors and shareholders to start with.

The process of incorporating a private limited company and a one person company is similar. The name of the company will be “ABC (OPC) Private Limited”.

1. Should be a natural person
2. Should be an Indian Citizen
3. Should be resident of India i.e. stayed atleast 182 days in India during the immediately preceding financial year.

A natural person shall not be member of more than a One Person Company at any point of time and the said person shall not be a nominee of more than a One Person Company.

1. The OPC should paint or affix its name, and the address of its registered office, and keep the same painted or affixed, on the outside of every office or place in which its business is carried on, in a conspicuous position, in legible letters.

   
   

   Also, if the characters employed therefore are not those of the language or of one of the languages in general use in that locality, also in the characters of that language or of one of those languages.

   
   

   For example, you are opening your branch office in Assam, the same name should also be written in Assamese language prominently used in that locality.

2. The OPC should get its name, address of its registered office and the Corporate Identity Number along with telephone number, fax number, if any, e-mail and website addresses, if any, printed in all its business letters, billheads, letter papers and in all its notices and other official publication.
3. Statutory Auditor must be appointed within one month of incorporation of the OPC.
4. Commencement of Business: In case the OPC incorporated is limited by share capital, the company cannot commence its business or exercise its borrowing powers until, the agreed subscription money is not been deposited in the bank account. There is a time limit of 180 days to commence the business from the date of incorporation.
5. Share Certificate to be issued within 60 days of incorporation of the One Person Company.
6. Preparation of Financial Statements- The One-person company should prepare the following financial statements at the end of every financial year and get it audited from Statutory Auditors of the company.
             a)Balance Sheet.
             b)Profit & Loss Account.
             c)Statement of Changes in Equity, if applicable.
             d)Notes to Accounts.
   

There is no requirement of preparation of cash flow statement for one person companies.

7. There is no requirement of holding Annual General Meeting in the case of One Person Company.
8. A One Person Company should hold at least one meeting of the Board of Directors in each half of a calendar year and the gap between the two meetings is not less than ninety days.

There is no minimum requirement of paid up capital in a OPC. You can start the OPC with as much minimum contribution.

1. Natural Person
2. Indian Citizen and Resident of India

A OPC is always treated similar with respect to a private limited company and hence the tax implications also follows. The benefits of tax as with sole proprietor cannot be enjoyed herein.