The enactment of Companies Act 2013 introduced a new concept of One Person Company. One Person Company is defined under section 2(62) of the Companies Act, 2013, as a company formed and managed by an individual who acts as director and shareholder at the same time. One person company registration has less compliance as compared to Pvt. Ltd. Company. One person company is commonly preferred by entrepreneurs over sole proprietorship in the initial stage of the business because one person company registration offers various benefits that are not available in any form of business structure. An individual forms a one-person company, and like other forms of business structures, it does not need a minimum of two members to form it.