One Person Company (OPC) Registration

A One Person Company (OPC) is a business structure that allows a single entrepreneur to establish and operate a company with limited liability. It provides the advantages of a private limited company while requiring minimal compliance. OPC registration is ideal for solo business owners looking to scale their operations with legal recognition, tax benefits, and a separate legal identity.

One Person Company Registration

Key Benefits of OPC Registration

Limited Liability Protection: Protects personal assets from business debts.

Separate Legal Entity:The business is distinct from its owner.

Perpetual Succession:The company continues to exist even after the owner’s demise.

Easier Loan Approvals: Higher credibility helps secure bank loans.

Minimum Compliance Requirements:OPCs enjoy simplified regulatory obligations.

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One Person Company Registration Application

Enter name of your Business Startup
Please enter name of authorized person.
Please enter pan number.
Please enter your email id.
Please enter your mobile number.
Please enter your address.
Please select state.
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Please enter GST Number.
You Must agree both Terms before Submitting the Form.
You Must agree both Terms before Submitting the Form.
Steps for One person Registration

One Person Company Registration

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  Process of One Person Company Registration

STEP 1

  • Fill out the online form with your details.
  • Make the required payment to proceed.
  • Get Call for Further Information, Documents & Advice

STEP 2

  • Submit documents and information if requested.
  • Team will review and validate documents and information.

STEP 3

  • Creation of login credential.
  • Respond to any follow-up from the team.

STEP 4

  • Filing of an Application using the Credentials
  • Government Processing Time

STEP 5

  • Resolution of Queries if any, Raised via Authorities
  • Issuance of One Person Registration on email.

What is One Person Company?

A One Person Company (OPC) is a unique business structure introduced under the Companies Act, 2013, designed to empower solo entrepreneurs. It allows a single individual to own and operate a corporate entity with limited liability protection, separate legal identity, and continuity beyond the owner’s lifetime. Unlike a sole proprietorship, an OPC shields the personal assets of its owner from business liabilities, offering a more secure and structured way to run a business.

The OPC model is ideal for small business owners, freelancers, and startups who seek the benefits of a private limited company without the need for multiple shareholders. With minimal compliance requirements and tax advantages, OPC registration provides a streamlined approach to business growth.

One Person Company illustration
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Why Register an OPC?

Registering an OPC helps sole entrepreneurs gain legal recognition while protecting their personal assets from business liabilities. It ensures business continuity through perpetual succession and makes it easier to secure loans, attract investors, and build trust with clients. OPCs also benefit from relaxed compliance requirements compared to private limited companies.

Features of an OPC

A One Person Company comes with several key features that differentiate it from other business structures:

1. Single Owner with Limited Liability

An OPC can be owned and managed by a single person, who is both the shareholder and the director. However, the owner’s liability is limited to the investment made in the company, protecting personal assets from business debts.

2. Separate Legal Entity

Even though there is only one owner, an OPC is recognized as a distinct legal entity, separate from its proprietor. This means it can enter contracts, own assets, and sue or be sued in its own name.

3. Tax Benefits and Financial Credibility

An OPC enjoys certain tax advantages, such as lower tax rates compared to sole proprietorships and eligibility for deductions under the Income Tax Act. Additionally, having an OPC enhances business credibility, making it easier to secure loans, attract investors, and establish partnerships.

4. Minimal Compliance and Regulatory Requirements

Compared to private limited companies, OPCs have fewer legal compliances, making them easier to manage. They are exempt from holding annual general meetings (AGMs) and require simpler financial reporting.

5. Perpetual Succession with a Nominee

To ensure continuity, OPC registration requires the appointment of a nominee who will take over in case of the owner's demise or incapacity. This prevents automatic dissolution, unlike a sole proprietorship.

6. Restrictions on Business Activities

An OPC cannot carry out non-banking financial activities (like investing in stocks or lending funds).
Once an OPC surpasses ₹2 crore turnover or ₹50 lakh paid-up capital, it must be converted into a private limited company.

Advantages of OPC Registration

Registering a One Person Company (OPC) provides several legal and financial advantages that help solo entrepreneurs establish a strong business foundation. Below are the key advantages of OPC registration:

1. Limited Liability Protection

1. Limited Liability Protection

OPC registration ensures limited liability, meaning the business owner is not personally responsible for company debts. This protects personal assets and minimizes financial risk.

2. Legal Recognition and Market Credibility

An OPC is a separate legal entity, making it more credible than a sole proprietorship. This enhances trust among investors, banks, and clients, facilitating better business growth and funding opportunities.

2. Legal Recognition and Market Credibility
3. Tax Efficiency

3. Tax Efficiency

OPCs benefit from lower corporate tax rates, exemptions, and deductions under the Income Tax Act. Unlike sole proprietorships, they avoid high individual tax rates and reduce overall tax liability.

4. Business Continuity and Perpetual Succession

Unlike sole proprietorships, OPCs enjoy perpetual succession. In case of the owner's demise, the appointed nominee takes over, ensuring smooth business continuity.

4. Business Continuity and Perpetual Succession
5. Easy Business Expansion and Conversion

5. Easy Business Expansion and Conversion

OPCs can scale operations efficiently and later convert into a Private Limited Company once they surpass turnover and capital thresholds, facilitating structured business expansion.

6. Brand Protection and Exclusive Name Rights

Registering an OPC ensures legal protection of the business name under the Companies Act, preventing competitors from using similar names and maintaining brand uniqueness.

6. Brand Protection and Exclusive Name Rights

By opting for One Person Company registration, solo entrepreneurs can enjoy the advantages of a structured corporate entity, enhanced market credibility, and legal protection while maintaining full control over business decisions.

Eligibility Criteria

To register a One Person Company (OPC) in India, entrepreneurs must meet specific eligibility requirements as per the Companies Act, 2013. The following criteria determine who can register an OPC and the associated restrictions.

Who Can Register an OPC?

An OPC is designed for solo entrepreneurs who want to run a company with limited liability while maintaining full control. The following individuals are eligible to register an OPC:

  • • Indian Citizen and Resident – Only a natural person who is an Indian citizen and has resided in India for at least 182 days in the previous financial year can incorporate an OPC.
  • • Sole Director/Promoter – The company can have only one person as shareholder, who acts as the director of the One Person Company.
  • • Nominee Requirement – The applicant must appoint a nominee while registering the OPC. The nominee takes over the company in case of the owner's incapacity or demise.
  • • No Minimum Capital Requirement – There is no specified minimum paid-up capital for OPC registration, making it accessible for small businesses and startups.
Eligibility Illustration

Conditions and Restrictions for OPC Registration

Conditions Illustration

While an OPC provides several benefits, there are some important restrictions imposed by the Ministry of Corporate Affairs (MCA):

  • • Only One OPC Per Person – An individual cannot incorporate or be a nominee for more than one OPC at a time.
  • • OPC Cannot Raise Public Funds – One Person Companies cannot issue shares to the public or list on stock exchanges.
  • • Mandatory Conversion – If the annual turnover exceeds ₹2 crores or the paid-up capital crosses ₹50 lakhs, the OPC must convert into a Private Limited Company (Pvt. Ltd.) within six months.
  • • Restricted Business Activities – OPCs cannot engage in non-banking financial activities (NBFCs), investment, or charitable purposes.

Documents Required for OPC Registration

To successfully register a One Person Company (OPC) in India, applicants must submit specific legal and identity documents as per the Ministry of Corporate Affairs (MCA) guidelines. Ensuring the submission of correct and complete documentation speeds up the OPC incorporation process and prevents unnecessary delays.

1. PAN Card of Director

Essential identity proof required for company registration.

2. Aadhaar Card of Director

Necessary for KYC compliance and verification.

3. Voter ID / Passport / Driving License

Additional government-issued ID for authentication.

4. Bank Statement / Passbook Copy

Proof of address, should not be older than two months.

5. Utility Bill (Electricity/Water/Gas/Phone)

Recent bill serves as proof of business address.

6. Rent Agreement (if rented office)

Notarized lease agreement needed for rented business premises.

7. No Objection Certificate (NOC)

Written consent from the property owner for business use.

8. Electricity/Water Bill of Office

Ownership proof, must be a recent document.

9. Nominee’s PAN & Aadhaar Card

Required documents for nominee verification.

10. Consent Form INC-3

Signed declaration from the nominee for appointment.

11. Digital Signature Certificate (DSC)

Mandatory for online submission of registration documents.

12. Director Identification Number (DIN)

Unique identification number assigned to directors.

13. Memorandum of Association (MoA)

Defines the company’s objectives and operational scope.

14. Articles of Association (AoA)

Specifies internal management rules and regulations.

OPC Registration Process

Follow these steps to successfully register a One Person Company (OPC) in India as per the Ministry of Corporate Affairs (MCA) guidelines.

1

Obtain a Digital Signature Certificate (DSC)

Necessary for online authentication and secure submission of documents.

2

Apply for Director Identification Number (DIN)

Unique ID assigned to the director for regulatory compliance.

3

Reserve Company Name via RUN Form

Secure a distinct company name through the Ministry of Corporate Affairs (MCA).

4

Prepare Memorandum & Articles of Association (MoA & AoA)

Define business objectives, governance, and operational structure.

5

Submit SPICe+ Form

A unified application for OPC incorporation, streamlining the registration process.

6

Pay Government Fees & Stamp Duty

Charges vary by state and must be paid for successful registration.

7

ROC Verification & Approval

The Registrar of Companies (ROC) examines the application and documents.

8

Receive Certificate of Incorporation

Official document confirming the OPC’s legal establishment.

9

Apply for PAN & TAN

Essential tax registration numbers for financial and business compliance.

10

Set Up a Business Bank Account

Enables financial transactions and ensures smooth operations.

Post-Registration Compliance for OPC

1
Annual Filings and Financial Reporting

An OPC must file its financial statements (AOC-4) and annual returns (MGT-7A) with the Registrar of Companies (ROC) every year. It is mandatory to audit financial records, even if the OPC has no transactions. Failure to comply can result in penalties.

2
Taxation and GST Compliance for OPCs

OPCs are taxed at a flat 25% corporate tax rate under the Income Tax Act, 1961. If the annual turnover exceeds ₹20 lakh (₹10 lakh for special category states), GST registration is mandatory. Timely filing of GST returns (GSTR-1, GSTR-3B, and GSTR-9) is essential to avoid penalties.

3
Conversion of OPC into a Private Limited Company

An OPC is required to convert into a Private Limited Company if:
The paid-up capital surpasses ₹50 lakh.
The annual turnover exceeds ₹2 crore for three consecutive financial years.

OPC Registraion FAQs

What is meant by a One Person Company (OPC)?
An OPC is a business structure where a single individual owns and operates a company with limited liability, offering the benefits of a corporate entity.
Any Indian citizen and resident (living in India for at least 182 days in the previous financial year) can register an OPC.
Yes, an OPC can have more than one director, but it can only have one shareholder or owner who controls the company.
No, an OPC can be registered with any amount of capital, as there is no legally mandated minimum capital requirement.
Yes, appointing a nominee is mandatory to ensure business continuity if the sole owner becomes incapacitated or passes away.
Yes, voluntary conversion is allowed anytime, and mandatory conversion is required if turnover exceeds ₹2 crore or paid-up capital surpasses ₹50 lakh.
Yes, OPCs cannot engage in financial activities like banking, insurance, or investment in other companies’ securities.
OPCs must file annual financial statements, income tax returns, and required compliance documents with the Registrar of Companies (ROC).
Yes, an OPC can voluntarily convert into a Private Limited Company by fulfilling legal procedures and compliance requirements.
No, OPCs are exempt from holding an AGM, and financial statements are directly approved by the sole member.
No, OPCs cannot register as a Section 8 company, which is required for non-profit or charitable activities.
No, only an individual Indian resident can be the sole member and nominee of an OPC.
If the owner becomes a non-resident, the OPC must convert into a Private or Public Limited Company within six months.
No, an individual cannot register or be a nominee in more than one OPC at a time.
No specific tax benefits exist for OPCs. They are taxed at 25% as per corporate tax laws applicable to private limited companies.