One Person Company (OPC) was launched in recent times as a nice refinement over sole proprietorship. In OPC, a sole promoter acquires absolute authority over the company, thereby limiting his liability towards their contribution to the enterprise. Therefore, the said person shall be the sole shareholder and director (although a director nominee exists, but has zero power unless the actual director proves to be unable to engage in the contract). Also, there may be no opportunity to contribute to employee stock options or equity funding. In addition, if the average hat-trick turnover of an OPC company is Rs. 2 crores and above or acquires paid-up funds of Rs. 50 lakhs and above, it has to be converted into a Private Limited Company or Public Limited Company within six months.