One person company shall be formed only as a company limited by shares.

One Person Company is a type of private company. According to Section 2(62) of the Companies Act, 2013, "One Person Company" means a company which has only one person as a member. According to Section 3(1)(c) of the Companies Act, 2013, only one person is required to subscribe to the memorandum of association of One Person Company. Section 3(2) of the Act states that one person company formed may be either: a company limited by shares a company limited by guarantee; an unlimited liability company. Hence One Person Company is the private company which may be formed as a company limited by shares or guarantee or unlimited company.