One-Person Company (OPC)
One Person Company (OPC) Registration in India - A Complete Guide
What is a One Person Company (OPC)?
A One Person Company (OPC) is a type of business entity that allows a single entrepreneur to operate a corporate structure with limited liability and separate legal identity. Introduced under the Companies Act, 2013, an OPC is ideal for small business owners and solo entrepreneurs who want to enjoy the benefits of a private limited company without requiring multiple shareholders.
Benefits of Registering a One Person Company
Limited Liability Protection
One of the biggest advantages of an OPC is limited liability protection. Unlike a sole proprietorship where the owner is personally liable for business debts, an OPC shields the personal assets of the entrepreneur. The liability is limited to the amount invested in the business.
Enhanced Credibility and Branding
An OPC registration significantly enhances business credibility. Clients, vendors, and investors are more likely to trust an incorporated entity over an unregistered business. Having "Private Limited" status in an OPC’s name provides a competitive edge in the market.
Separate Legal Entity
An OPC enjoys the status of a separate legal entity, meaning it has its own identity distinct from the owner. This allows the company to enter contracts, own assets, and sue or be sued in its name.
​
​
​
Greater Control and Decision-Making Power
Since an OPC is owned and controlled by a single person, decision-making is streamlined. There is no need to consult multiple shareholders or partners, allowing the business owner to act quickly and efficiently.
Ease of Compliance
Compared to private limited companies, an OPC has fewer compliance requirements. There is no need for a statutory audit unless the turnover exceeds ₹2 crores or the paid-up capital is more than ₹50 lakhs. The annual filing requirements are also minimal.
​
Less Legal Complications and Ownership Clarity
Since there is only one owner, there is no possibility of internal disputes related to ownership, management, or profit-sharing, making it an ideal business structure for solo entrepreneurs.
Step-by-Step Process for OPC Registration in India
START YOUR BUSINESS JOURNEY ALONE WITH US AS YOUR FINANCIAL PARTNER
Step 1: Obtain Digital Signature Certificate (DSC)
Since OPC registration is done online, the sole director must obtain a Digital Signature Certificate (DSC) from a certifying agency.
Step 2: Apply for Director Identification Number (DIN)
The Director Identification Number (DIN) is mandatory for the sole owner/director and can be obtained via the SPICe+ (Simplified Proforma for Incorporating a Company Electronically) form.
Step 3: Name Reservation via RUN (Reserve Unique Name) Service
The company name should be unique and follow Ministry of Corporate Affairs (MCA) guidelines. The name reservation is done through the RUN service on the MCA portal.
Step 4: Drafting of Memorandum of Association (MOA) & Articles of Association (AOA)
-
MOA defines the company’s objectives and business activities.
-
AOA outlines the company’s internal management and governance structure.
-
A nominee must be appointed in case of the director’s incapacitation.
Step 5: Filing of SPICe+ Form
The incorporation application is submitted through the SPICe+ form on the MCA portal. This includes:
-
Director details
-
Registered office details
-
Capital structure
-
Tax registrations (GST, PAN, TAN) in a single window
Step 6: Issuance of Certificate of Incorporation
After successful verification, the Registrar of Companies (ROC) issues the Certificate of Incorporation, and the OPC is officially registered.
Step 7: Apply for PAN & TAN
Upon incorporation, the company must obtain a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department.
Step 8: Bank Account Opening
A corporate current bank account must be opened in the name of the company to conduct financial transactions.
Documents Required for OPC Registration
For the Sole Director/Owner
-
PAN Card
-
Aadhaar Card
-
Passport (if applicable for NRIs/foreign nationals)
-
Voter ID/Driving License
-
Passport-sized photographs
For the Office Address
-
Rental Agreement/Lease Deed (if rented)
-
NOC from the property owner
-
Latest utility bill (electricity/water/gas) as address proof
For the Nominee
-
PAN Card
-
Aadhaar Card
-
Consent Form INC-3 (Nominee Consent Form)
Timeline for OPC Registration
-
Digital Signature Certificate (DSC): 1-2 working days
-
Director Identification Number (DIN): 1-2 working days
-
Name Approval (RUN Service): 4-5 working days
-
Company Incorporation (SPICe+ Form Submission & Approval): 3-5 working days
-
PAN & TAN Allotment: 2-3 working days
Total Estimated Time for OPC Registration: 10-15 working days
OPC Compliance Requirements
Once registered, an OPC must comply with the following annual requirements:
-
Annual ROC Filings – File AOC-4 and MGT-7A with MCA.
-
Income Tax Return Filing – Mandatory every financial year.
-
Statutory Audit – If turnover exceeds ₹2 crores or paid-up capital is above ₹50 lakhs.
-
GST Filing – If applicable, based on business turnover.
-
Board Meetings – At least one meeting every six months.
Who Should Register a One-Person Company?
01
Solo entrepreneurs who wish to be recognised as a corporate or a company.
03
Small business owners who wish to scale while maintaining full control.
02
Freelancers and consultants who want limited liability protection.
04
Startups preferring a structured and legally compliant business model.
Conclusion
Registering a One Person Company (OPC) is the best way for solo entrepreneurs to enjoy the benefits of a corporate structure without the complexities of a partnership or private limited company. With limited liability, brand credibility, and tax benefits, an OPC provides the ideal framework for small business growth.
Frequently asked questions
