Minimum Eligibility Requirements
- At least one director (mandatory)
- Must appoint one nominee
- No minimum capital requirement
- Digital Signature Certificate (DSC) of the director is required
- The director must be an Indian resident
Benefits of a One Person Company
- Limited Liability – Protects the personal assets of the owner
- Separate Legal Identity – Treated as an independent legal entity
- Perpetual Existence – Continues to exist despite changes in ownership
- Ideal for Solo Entrepreneurs – Great for single-owner startups
- Fewer Regulatory Compliances – Simpler than a private limited company
What is a One Person Company?
A One Person Company (OPC) is a corporate structure defined under Section 2(62) of the Companies Act, 2013, designed to facilitate businesses run by a single individual.
It bridges the gap between sole proprietorship and private limited companies, offering corporate benefits such as limited liability and legal recognition, without requiring multiple shareholders.
OPCs help entrepreneurs register their venture without needing to form a partnership or involve external investors.
Why Register as an OPC?
- Transforms your business into a formal legal entity
- Full ownership and control remain with the founder
- Limited financial risk for the business owner
- No requirement for a minimum paid-up share capital
- Perpetual succession ensures business continuity
Advantages of OPC Registration
✔ Limited Financial Liability
Your personal assets are safeguarded. Liability is limited only to your share in the company.
✔ Independent Legal Status
An OPC is treated as a separate legal entity, capable of entering into contracts and owning property.
✔ Tax Efficiency
You can draw salary, rent, and interest from your company — all tax-deductible expenses that help reduce taxable profits.
✔ Speedy Decision Making
Since there’s only one owner, decision-making is quick and uncomplicated.
✔ Audit Exemption
Audit is only mandatory when capital exceeds ₹25 lakhs or turnover exceeds ₹40 lakhs.
Who Can Register an OPC?
The person forming an OPC and their nominee must be:
- A natural person
- An Indian citizen
- A resident in India (i.e., stayed in India for 182 days or more in the previous calendar year)
❌ Restrictions:
- One person cannot incorporate more than one OPC
- One person cannot be a nominee in more than one OPC
- If you are already a member in an OPC and become a nominee in another, you must exit one within 180 days
Important Provisions for OPCs
- OPCs can be started with any capital amount, even as low as ₹2
- Mandatory conversion into a Private Limited Company is required if:
- Paid-up capital exceeds ₹50 lakhs, or
- Turnover crosses ₹2 crores over three consecutive financial years
- Cannot convert into Section 8 (non-profit) companies
- Cannot engage in NBFC activities like investing in corporate securities
- Voluntary conversion into another type of company is not allowed within the first 2 years, unless capital/turnover thresholds are crossed
Documents Needed for OPC Registration:
Personal Documents
- PAN card (self-attested)
- Identity proof – Aadhar / Voter ID / Passport / Driving License
- Address proof – Recent utility bill or bank statement (not older than 2 months)
- 2 passport-sized photos (color)
Business Address Proof
- NOC from the property owner
- Utility bill + Property ownership document (e.g., tax receipt, sale deed)
Additional Forms
- Consent of Nominee (Form INC-3)
- Consent to act as Director (Form DIR-2)
- Preparation of MOA and AOA electronically
Details Required During Registration:
- Authorized and paid-up share capital of the company
- Place of birth and duration of stay of the sole member, director, and nominee
- Professional details – Occupation and educational qualification
- Company objective (nature of business)
- Active email IDs and mobile numbers of all individuals involved
Step-by-Step Process for OPC Registration:
Step 1: Digital Signature (DSC)
Obtain a Digital Signature Certificate (DSC) for the proposed director
Step 2: Name Reservation (SPICe+ Part A)
Apply for company name reservation through SPICe+ on www.mca.gov.in
- Ensure the name is unique and not already registered under any trademark class
- Use Part A of the SPICe+ form to apply for name reservation only, or combine with Part B for full registration
Step 3: Complete SPICe+ Part B
Fill in detailed information for incorporation:
Attach required documents:
- Director’s and Nominee’s PAN, ID, and Address proof
- Form INC-3 (Nominee Consent)
- NOC and address proof of the registered office
- MOA & AOA (prepared digitally)
Step 4: Convert SPICe+ to PDF & Affix DSC
Convert completed forms to PDF and digitally sign using the DSC of the director and nominee
Step 5: Fill AGILE-PRO
Complete the AGILE-PRO form to apply for:
- EPFO and ESIC registration (mandatory)
- Bank account opening
- GSTIN (optional)
Step 6: Upload to MCA Portal
Upload all signed PDF forms via MCA’s website for processing and approval
Step 7: Auto-generated INC-9
The declaration form INC-9 is auto-generated in PDF and electronically submitted unless:
- Subscribers/directors are more than 20, or
- Does any lack PAN or DIN
Start Your Business with an OPC Today
OPC is a powerful business structure for solo founders. It provides credibility, financial protection, and the legal identity needed to scale confidently. Let our experts assist you with smooth registration and compliance support.
✅ Launch your OPC today — Start your journey as a solo founder with a legal identity!