One Person Company (OPC) is a legal structure under the Companies Act that allows entrepreneurs to start a company with only one member. In this video, we cover the definition, legal framework, features, and suitability of OPCs for businesses.
Starting with the definition, an OPC is a type of company where a single individual holds 100% of the shares and takes full responsibility for the company's operations. It offers limited liability protection to the sole member and simplifies the process of running a business.
Further, we delve into the legal framework provided by the Companies Act to establish and govern OPCs. The Act specifies the minimum and maximum number of directors, shareholders, and nominees an OPC can have. It also provides for its incorporation and compliance requirements in detail.
Next, we discuss the key features of OPCs. These include:
Perpetual succession 🔄
Limited liability 💼
Separate legal identity 🏛️
Single Ownership 🎩
Owner involved in a different 👔
Finally, we explore the suitability of OPCs for businesses. OPCs are particularly beneficial for small-scale entrepreneurs and professionals who want to establish a company with limited financial resources. It offers the advantages of limited liability, easier decision-making, and the ability to raise funds through equity or loans.
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