One Person Company Registration
Looking to get your one person company registered? You are in the right spot!
Registering a One-Person Company (OPC) is a popular choice for entrepreneurs seeking limited liability protection and a separate legal identity.
- Expert assisted Online OPC registration in 7 business days
- Name approval, DSC, DIN allotment, PAN, TAN, and compliance filing Done
- Support for annual compliance, financial statements, and statutory audits.
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Table of Content
- One Person Company Registration-Overview:
- Eligibility Criteria for One Person Company (OPC) Registration:
- Advantages and Disadvantages
- Required Documents for One Person Company (OPC) Registration Online
- FAQ's
One Person Company Registration-Overview:
Eligibility Criteria for One Person Company (OPC) Registration:
- Single Shareholder : Only one individual, an Indian citizen, can be the shareholder.
- Resident Director: : The director must be an Indian resident (living in India for at least 182 days in the previous financial year).
- Unique Name : Unique Name
- Nominee Requirement : A nominee must be appointed to take over in case of the shareholder’s death or incapacity.
- No More than One OPC : An individual can be a member of only one OPC.
- Profit-making Purpose : The company must be formed for profit, not for non-profit or charitable purposes.
- No Minimum Capital Requirement : There's no specified minimum capital for OPC registration.
Advantages and Disadvantages of One Person Company (OPC):
| Advantages | Disadvantages |
|---|---|
| Limited Liability: Shareholder's liability is limited to the unpaid share capital. | Only One Shareholder: Only one person can be the shareholder, limiting ownership. |
| Separate Legal Entity: The company is treated as a separate legal entity, distinct from its owner. | Higher Compliance Requirements: OPCs have higher compliance and reporting requirements compared to sole proprietorships. |
| Full Control: The sole member has complete control over the business and decision-making. | No More Than One OPC: An individual cannot form or be a member of more than one OPC. |
| Easier Access to Funding: OPCs can raise funds through loans and venture capital more easily than sole proprietorships. | Restrictions on Foreign Investment: OPCs cannot have foreign shareholders or directors. |
| Perpetual Succession: The company continues to exist even if the owner dies, due to the nominated nominee. | Limited Flexibility in Management: The management structure is more formal compared to a sole proprietorship. |
| Credibility: Having "OPC" in the name lends the business greater credibility and trust with clients and investors. | Higher Initial Costs: There are initial registration costs, legal formalities, and ongoing compliance costs. |
Required Documents for One Person Company (OPC) Registration Online
• Aadhaar Card (mandatory for Indian citizens)
• Passport (if applicable)
• Voter ID
• Driver’s License
• Pan Card
• Utility Bill (Electricity, Water, or Gas bill) not older than 2 months.
• Bank Statement (within the last 2 months).
• Rental Agreement (if renting, along with the landlord’s proof of ownership).
FAQs on OPC Registration FAQ's
A One Person Company (OPC) is a business structure where a single individual can form a company with limited liability. It combines the benefits of a sole proprietorship and a private limited company, offering the owner full control while providing the protection of limited liability.
• Only an Indian citizen and a resident of India (living in India for at least 182 days in the last financial year) can form an OPC.
• The individual must be the sole shareholder and can also be the sole director of the company.
There is no minimum capital requirement for OPC registration under the Companies Act of 2013. However, you must ensure that you have sufficient capital to meet operational and legal requirements.
No, an individual can only be a member of one OPC. They cannot form or hold membership in more than one OPC.
A nominee is a person designated by the sole shareholder to take over the company in case of the shareholder’s death or incapacity. The nominee’s consent is mandatory for the registration of an OPC.
No, only Indian citizens who are residents of India can form an OPC. Foreign nationals or foreign companies cannot be shareholders or directors in an OPC.
• A Sole Proprietorship is owned and managed by a single person, and the owner has unlimited liability.
• An OPC allows the same person to own and manage the company but provides limited liability protection, which means the owner’s personal assets are protected in case of business losses.
• Annual financial statements and tax filings (Income Tax Return).
• Hold an Annual General Meeting (AGM), if applicable.
• File Annual Return with the Registrar of Companies (RoC).
• Proof of identity and address for the shareholder and director.
• Proof of address for the registered office.
• Digital Signature Certificate (DSC) and Director Identification Number (DIN).
• Nominee’s consent letter.
• Memorandum of Association (MOA) and Articles of Association (AOA).
Yes, an OPC can be converted into a Private Limited Company once its annual turnover exceeds ₹2 crore or if it wishes to have more than one shareholder. The conversion process involves compliance with necessary filings and changes in the company’s structure.
OPCs are taxed as private limited companies. They are required to pay income tax on their profits and file annual tax returns. However, the company’s tax rates and exemptions depend on the annual turnover and business activities.
Yes, in an OPC, the sole shareholder can also be the sole director of the company. However, the company is still required to have at least one director who is a resident of India.
Typically, the OPC registration process takes about 7 to 10 business days, depending on the completeness of documents and approval from the Ministry of Corporate Affairs (MCA).
In the event of the death or incapacity of the sole shareholder, the nominee takes over the company. The nominee will have to apply to the Registrar of Companies (RoC) for the transfer of shares and continue the business operations.
Related Business Registrations
In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.
