One person company, introduced by the Companies Act, 2013, represents a modernized approach to business, offering advantages beyond traditional sole proprietorships. An OPC may have just one shareholder/member but can appoint multiple directors. OPCs are well-suited for small businesses with limited turnover and nominal paid-up capital. However, it's important to note that if an OPC's paid-up capital exceeds ₹50 Lakhs or its average annual turnover over the past three consecutive years exceeds ₹2 Crores, it must convert into a private limited or public limited company within six months.
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