One Person Company (OPC): Overview
A One Person Company (OPC) is an ideal business structure for individual entrepreneurs who want to operate with limited liability, legal recognition, and complete control over their business. Introduced under the Companies Act, 2013, OPC allows a single person to incorporate a company without partners or shareholders, making it a preferred choice for startups, consultants, professionals, and small business owners.
With the Ministry of Corporate Affairs (MCA) offering a fully online incorporation process, OPC registration in India is now quick, paperless, and cost-effective. This structure also makes it easier for solo entrepreneurs to raise funds and gain credibility with banks and investors.
This article will guide you through the meaning of OPC, its benefits, the registration process, and the required documents. Let’s understand it in detail.
Meaning of One Person Company (OPC)
As per Section 2(62) of the Companies Act, 2013, a One Person Company is a company with only one member. The sole member serves as both shareholder and director, while a nominee is appointed to ensure continuity in the event of death or incapacity.
It combines the simplicity of sole proprietorship with the legal protection of a private limited company. This structure also makes it easier for solo entrepreneurs to raise funds and gain credibility with banks and investors.
Main Features of a One Person Company
- Single Ownership: Only one shareholder and one director required
- Limited Liability: Personal assets are protected
- Separate Legal Entity: OPC can own assets and enter into contracts independently
- Perpetual Succession: Continues through a nominee
- Reduced Compliance: Fewer statutory requirements compared to private companies
Eligibility Criteria for OPC Registration in India
To register an OPC, the following conditions must be fulfilled:
- Only a natural person can incorporate an OPC
- The person must be an Indian citizen and resident
- The promoter must not be a minor
- One nominee must be appointed
- Minimum authorised capital of ₹1 lakh
- Only one person can form an OPC at a time
Documents Required for OPC Registration
For Director and Nominee
- PAN Card
- Aadhaar Card / Passport / Voter ID / Driving Licence
- Address proof (bank statement or utility bill – not older than 2 months)
- Passport-size photograph
For Registered Office
- Rent agreement (if rented)
- No Objection Certificate (NOC) from the owner
- Utility bill (electricity or water bill)
Company Documents
- Memorandum of Association (MoA)
- Articles of Association (AoA)
Step-by-Step Process to Register an OPC Online
- Obtain DSC: Apply for a Digital Signature Certificate (DSC) for the sole director.
- Apply for DIN: A Director Identification Number (DIN) is allotted through the SPICe+ form.
- Name Reservation: Select a unique company name and apply for approval through the SPICe+ Part A form on the MCA portal.
- Draft MoA and AoA: Prepare MoA and AoA defining the company’s objectives and internal rules.
- File Incorporation Forms: Submit SPICe+ Part B along with linked forms:
- INC-32 (Incorporation)
- INC-33 (MoA)
- INC-34 (AoA)
- Certificate of Incorporation: Once approved by the Registrar of Companies (ROC), a Certificate of Incorporation is issued along with PAN and TAN.
Time Required for OPC Registration
OPC registration generally takes 7–10 working days, subject to name approval and document verification.
Post-Incorporation Compliances for OPC
After registration, the following compliances must be completed:
- Opening a current bank account
- Appointment of a statutory auditor
- Filing annual returns and financial statements
- Income tax return filing
Annual Compliance Requirements for OPC
| S.No | Compliance | Form | Due Date |
|---|---|---|---|
| 1 | Annual Return | MGT-7 | Within 60 days from the date of the AGM |
| 2 | Financial Statements | AOC-4 | Within 180 days from the FY end |
| 3 | Income Tax Return | ITR-6 | By 30th September of the assessment year |
Taxability of OPCs in India
- OPCs are taxed as domestic companies and must pay corporate income tax on their profits
- They may opt for a 22% tax rate (plus surcharge and cess) or 30% if exemptions are claimed
- Tax deductions are allowed for depreciation, business expenses, and eligible allowances
- GST registration is mandatory if annual turnover exceeds ₹20 lakh
- MAT applies at 15% of book profits, and a tax audit is required beyond the prescribed turnover limits
Advantages of Registering an OPC
- Full ownership and control
- Limited liability protection
- Higher business credibility
- Easy conversion into a private limited company
- Clear succession through the nominee
Conclusion
Registering an OPC online in India is a simple and efficient way for solo entrepreneurs to formalise their business while enjoying the benefits of limited liability and corporate recognition. With minimal compliance, structured governance, and easy scalability, OPC is an excellent choice for individuals starting or expanding their ventures.
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