Recently, Delhi-based businessman Ankur Sharma registered his tour & travel services firm as a one-person company (OPC). "Right now, my priorities are to get the business started at the earliest. I plan to make it a private limited company in six-eight months," he says. As a registered legal entity under the OPC category, separate from its owner, Sharma will have easier access to bank loans and less compliance under the different provisions of the Companies Act, with liability limited to the entity's net worth. OPCs help start-up entrepreneurs test a business model, a product or a service, before attracting new investors.

Source - http://www.business-standard.com