A One Person Company (OPC) is a type of business structure that allows a single individual to form and operate a company as its sole owner and director. It is a legal entity distinct from its owner, which means that the individual's personal assets are typically protected from the company's liabilities. OPCs were introduced to provide a formal business structure for solo entrepreneurs and small business owners in certain jurisdictions.

Here are some key characteristics of a One Person Company:

1. Single Ownership: As the name suggests, an OPC is owned by a single person. This individual holds all the shares of the company and is the sole shareholder.

2. Limited Liability: The primary advantage of an OPC is that the owner's liability is limited to the extent of their investment in the company. In case the company incurs debts or legal obligations, the owner's personal assets are generally protected from being used to cover these liabilities.

3. Separate Legal Entity: Like other types of companies, an OPC is considered a separate legal entity from its owner. It can own property, enter into contracts, and sue or be sued in its own name.

4. Nominee Director: In some jurisdictions, an OPC may be required to appoint a nominee director who can take over the management of the company in case the owner becomes incapacitated or passes away. This is done to ensure the continuity of the business.

5. Limited Capital Requirements: OPCs may have fewer capital requirements compared to other types of companies. This can make it more accessible for solo entrepreneurs or small business owners to start a formal business entity.

6. Taxation: The taxation of an OPC can vary depending on the jurisdiction. In some places, they may be subject to the same tax rules as other companies, while in others, they may be taxed as a sole proprietorship or partnership, depending on the owner's income.

7. Compliance Requirements: OPCs are typically subject to certain compliance requirements, such as filing annual financial statements and holding annual general meetings, as per the regulations of the country in which they are registered.

8. Conversion: In some cases, as the business grows, the owner of an OPC may choose to convert it into a private limited company or another suitable business structure, allowing for the inclusion of more shareholders and directors.

It's important to note that the specific regulations governing OPCs can vary from country to country, and not all countries have provisions for this type of business structure. Additionally, the name and requirements for OPCs may differ depending on the jurisdiction. Entrepreneurs interested in forming an OPC should consult with legal and financial professionals to understand the specific requirements and advantages in their region.