One-Person Company (OPC) has the blended features of a sole proprietorship and a private company. OPC is also known as a one-man company.

Like a sole proprietorship allows you to own the firm completely, an OPC also has just one shareholder. But unlike a sole proprietorship, in an OPC the owner has limited liability and the burden of outstanding debts does not fall on the owner, as an OPC is treated as a separate entity.

OPC as a Private Limited Company has to obey specific rules and regulations that are mentioned in the Memorandum of Association (MoA) and Article of Association (AOA) which provides the guidelines for mutual rights and duties (We'll provide both MOA & AOA for free).

The minimum share capital to incorporate a One-Person Company in Nigeria is; 100,000 Naira and the name shall end with the word, “Limited” or "Ltd".

Here are some general features of a one-person company:

1. Private company: A single person can form a company for any lawful purpose. It further describes OPCs as private companies.
2. Single-member: OPCs can have only one member or shareholder, unlike other private companies.
3. 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.
4. Minimum one director: OPCs need to have minimum one person (the member) as director. They can have a maximum of 15 directors.
5. Special privileges: OPCs enjoy several privileges and exemptions under the Companies Act that other kinds of companies do not possess.
6. Limited Liability: The creditors can sue only the Company and not the Director nor member for Company’s debt.
7. Property: OPC can acquire, alienate and own the property in its name.
8. Share Capital: The minimum capital share requirement for the incorporation of OPC is 100,000 naira (One hundred thousand naira only).
9. Age Requirements: An applicant whose age is less than 18 years (Minor) cannot become a member or director of such a company.

Following are some of benefits of One Person Company.

• It has separate legal entity.
• The liability of shareholder/ director is limited
• Legal status and social recognition for your business.
• It gives suppliers and customers a sense of confidence in business.
• The director and shareholder can be same person
• On the death/disability company can be succeed by nominee.
• Exemption available from various provisions under Company law.
• They do not have to hold annual general meetings.
• Their financial statements need not include cash flow statements.
• A company secretary is not required to sign annual returns; directors can also do so.
• Provisions relating to independent directors do not apply to them.
• Several provisions relating to meetings and quorum do not apply to them.
• They can pay more remuneration to directors than compared to other companies.
• It is unchallenging to manage a One-Person Company as it Provides complete control of the company to a person.
• This type of company is regarded as a corporate entity that draws in various venture capitalists and angel investors that support and help the company to raise more funds and to expand its business.
• When you register a company name, it is protected and cannot be used by any other limited company or LTD, nor can another company register a name that is similar to your own company name.
• Small businesses with an annual turnover of less than N25 million are exempted from paying Company Income Tax in Nigeria.

To complete the Registration of Your One-Person Company in Nigeria, you’ll have to provide the following details upon Submission;

• Proposed Name of the Company (2 Names).
• The objectives and nature of business of the company.
• Address of the company.
• The share capital and shareholding formula among shareholders.
• Memorandum of Association and Article of Association (MEMART) – We’ll provide both MOA & AOA for free.
• Details of Shareholder and Director(s). Details such as; names, occupations, residential addresses, email addresses, mobile phone numbers, and means of identification (National Identification Card, Data Page of International Passport, Driver’s Licence, or Voter’s Card).

At least one nominee is required to start an OPC who can act as a shareholder as well as a director. The company can have only one shareholder but can have up to 15 directors, and the number can be increased with a resolution.

It usually takes 3-14 business days for the OPC Registration in Nigeria. Name Search: 6 - 24 hours from submission. Grant of Certificate of Registration: 2 - 10 Days from filing. Total time: Approximately 3 - 14 days.

Sole proprietorship and One-Person Company are two different forms of ownership. In a sole proprietorship, a business is managed and controlled by a person.

However, in the case of an OPC, an individual can commence the operation as per the rules and regulations of laws. Moreover, an OPC is registered under the Registrar of the Company.

A limited liability company (LTD) provides the business owner with liability protection and tax advantages, while sole proprietors bear personal liability for their business. Additionally, an LTD can be owned by investors, while a sole proprietorship is usually owned and managed by an individual.