What Is A One Person Company (OPC) In India?
A One Person Company (OPC) is a business structure designed for a solo entrepreneur who wants a business with a separate legal identity and limited liability, similar to a company, but run by just one person. The sole owner is both the shareholder and director.
Why Choose An OPC In 2026?
OPC is a good choice if you want:
- A company structure with limited liability protection (your personal assets are safer compared to a sole proprietorship)
- Only one owner instead of multiple directors/shareholders
- A legal business entity that can raise funds or open a bank account in the company name
However, there are some restrictions (which are explained later) such as turnover and capital limits.
Who Is Eligible To Register An OPC?
To form an OPC in India, you must meet the following eligibility conditions:
- The owner must be an Indian citizen and resident (lived in India for at least 120–182 days in the previous year depending on rule interpretations)
- The promoter must be at least 18 years old
- Only one person can be the shareholder/director
- A nominee must be appointed at the time of registration who will take over if the owner becomes incapacitated or passes away
- Paid-up share capital must not exceed certain regulatory limits and turnover should stay below specified thresholds (turnover around ₹2 crore or capital ₹50 lakh – exact MCA limits apply)
- Certain businesses like banking, insurance, investment firms, and non-profit activities cannot be registered as OPCs.
Step-By-Step OPC Registration Process (2026)
Step 1: Get Digital Signature Certificate (DSC)
Digital Signature Certificates are required for signing all online company registration forms on the Ministry of Corporate Affairs (MCA) portal.
- Apply for a Class 3 DSC from a government-approved certifying agency (e.g., eMudhra, Sify).
- Typically completed in 1–2 days.
Step 2: Apply For Director Identification Number (DIN)
If this is your first time becoming a company director, you need a DIN.
- DIN can be applied separately, but often this is included in SPICe+ incorporation filing.
- Takes 1–2 days if done separately.
Step 3: Choose And Reserve Your Company Name
Reserve a unique name for your OPC using SPICe+ Part A on the MCA portal.
Rules for company name:
- Must be unique
- Should not be identical to existing names
- Must end with “(OPC) Private Limited” or similar approved suffix
Name approval usually takes 1–3 days.
Step 4: Prepare Required Documents
Documents for owner:
- PAN Card, Aadhar Card or Passport
- Passport-size photo
- Address proof
Nominee documents:
- PAN, Aadhaar or Passport
- Consent letter (Form INC-3)
Registered office proof:
- Utility bill (not older than 2 months)
- Rental/ownership proof and NOC from owner (if rented)
MOA & AOA:
- Memorandum of Association and Articles of Association directed by MCA rules.
Step 5: File The Incorporation Forms
Submit the SPICe+ Part B form with all details:
- Company and owner information
- Registered office and nominee details
- DSC and DIN attachments
- MOA/ AOA documents
- Government fees and stamp duty
This filing also requests PAN and TAN issuance.
Step 6: Receive Certificate Of Incorporation
After MCA verification, the Registrar of Companies (RoC) issues the Certificate of Incorporation (COI).
The COI includes:
- Corporate Identity Number (CIN)
- PAN and TAN linked with company
- Company name
Once you receive this certificate, your OPC officially exists.
Estimated Timeline For OPC Registration
Typical timeframes for OPC registration in India (2026) are:
| Process Stage | Estimated Time |
|---|---|
| Name approval | 1–3 days |
| Preparing documents | 2–5 days |
| MCA filing and verification | 7–10 days |
| Certificate issuance | 1–2 days |
Overall, the process generally takes about 7 to 15 working days if all documents are correct.
Estimated Cost For OPC Registration
The cost to register an OPC varies depending on professional help, stamp duty, and authorized capital:
| Component | Estimated Cost |
|---|---|
| Digital Signature Certificate (DSC) | ₹1,000–₹2,000 |
| DIN (if separate) | ₹500 |
| Government filing/stamp duty | ₹1,000–₹3,000+ |
| Professional/consultancy fees (CA/CS/agent) | ₹5,000–₹15,000 |
Total estimated costs range from ₹8,000 to ₹18,000+ depending on services used and state.
Post-Registration Compliance In 2026
After registration, your OPC must follow certain legal requirements each year:
Annual Filings:
- File annual returns and financial statements with ROC
- Maintain statutory books and records
- Hold required board meetings (minimum 2 meetings)
Tax Compliance:
- File income tax return (ITR-6)
- Comply with GST and TDS requirements if applicable
- Maintain corporate compliance to avoid penalties.
Benefits Of Registering An OPC
- Separate legal identity from owner
- Limited liability protection
- Enhanced credibility with banks and customers
- Simpler compliance compared to larger companies
- No requirement for multiple directors/shareholders Helps solo entrepreneurs manage business professionally.
Key Restrictions For OPC In 2026
You should know these limitations before you register:
- An individual can register only one OPC at a time.
- Paid-up capital and turnover limits require conversion to a private limited company once exceeded.
- Some restricted business activities (like banking and insurance) cannot be formed as OPCs.
Conclusion
One Person Company registration in India remains a practical, entrepreneur-friendly structure in 2026. With online processes like SPICe+, it is possible to complete registration in a couple of weeks if documents are ready and correctly filed. An OPC combines legal protection with solo ownership and a streamlined compliance regime.End Notes:
- https://instabizfilings.com/one-person-company
- https://instabizfilings.com/blog/business-structure-types-in-india-llp-opc-pvt-ltd
- https://instabizfilings.com/blog/sole-proprietorship
- https://instabizfilings.com/blog/digital-signature-certificate-online
- https://instabizfilings.com/blog/ministry-of-corporate-affairs-mca
- https://instabizfilings.com/blog/e-mudhra-digital-signature
- https://instabizfilings.com/director-identification-number-din
- https://instabizfilings.com/blog/mca-portal-registration
- https://instabizfilings.com/blog/pan-card
- https://instabizfilings.com/blog/aadhar-card
- https://instabizfilings.com/blog/passport
- https://instabizfilings.com/blog/certificate-of-incorporation
- https://instabizfilings.com/private-limited-company
