One person company formation is governed by the Companies Act, 2013. OPC is a separate legal entity which provides the flexibility of limited compliance and requires only one person as Director and of the company.

It is mostly feasible for companies where the turnover is not expected to cross Rs.2 Crores in a financial year, however once the threshold limit of Rs.2 Crores is crossed it is mandatory to convert it into a private limited company within a period of six months.