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One Person Company

A company incorporated under Section 2(62) of Companies Act 2013 with only one member and one director (can be same person). Mandatory conversion to private company if paid-up capital exceeds ₹50 lakh or turnover exceeds ₹2 crore.

Last updated: 17 May 2026

Frequently Asked Questions (FAQs)🔗

Q1. What is One Person Company in Indian corporate law?
A company incorporated under Section 2(62) of Companies Act 2013 with only one member and one director (can be same person). Mandatory conversion to private company if paid-up capital exceeds ₹50 lakh or turnover exceeds ₹2 crore.
Q2. Why is One Person Company important for compliance?
One Person Company is governed by the Ministry of Corporate Affairs under the Companies Act, 2013. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Q3. Who should know about One Person Company?
One Person Company is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with MCA regulatory matters in India.

Contextual Analysis & Regulatory Updates🔗

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