An OPC is created the same way as a private limited company, with the only difference being that it has only one member and is prohibited from inviting members from the public to be a part of it. Before the 2020 act, sole proprietorship was the concept in place if one person had to open or carry on his own corporate sector but it was different from OPC as it could not enjoy the benefits given under Companies Act.
Characteristics or Features of a One-Person Company
Here are some general features of a one-person company:
- Private company: A single person can form a company for any lawful purpose. It further describes OPCs as private companies.
- Single-member: OPCs can have only one member or shareholder, unlike other private companies.
- No perpetual succession: Since there is only one member in an OPC, his death will result in the nominee choosing or rejecting to become its sole member. This does not happen in other companies as they follow the concept of perpetual succession.
- Minimum one director: OPCs need to have minimum one person (the member) as director. They can have a maximum of 15 directors.
- Special privileges: OPCs enjoy several privileges and exemptions under the Companies Act that other kinds of companies do not possess.
- Limited Liability: The creditors can sue only the Company and not the Director nor member for Company’s debt.
- Property: OPC can acquire, alienate and own the property in its name.
- Share Capital: The minimum capital share requirement for the incorporation of OPC is 100,000 naira (One hundred thousand naira only).
- Age Requirements: An applicant whose age is less than 18 years (Minor) cannot become a member or director of such a company.
If you are still not sure which one to pick for your business, feel free to reach out to us and our experts will guide you in making the right decision.
SplashDict is equipped with accredited experts and the necessary resources to assist you to complete the One-Person Company Incorporation in Nigeria.
One-Person Company Incorporation
- Delivery of Certificate Of Company incorporation.
- Drafting and digital delivery of approved Memorandum of Association and Articles of Association (MEMART).
- Delivery of Status Report.
- Delivery of Certified True Copy of Application Form.
- FIRS’ Tax Identification Number Inclusive.
- 3 to 14 Business Days Delivery.