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One Person Company (OPC) is a recent category of Private Limited Company and its creation came to existence when section 2(62) contained in the Companies law, 2013 was effected and a single Indian person may own a One Person Company, and he/she is also the director of the company. The fact that it will consist only of a single member is coupled with the fact that it has the advantage of limited liability, permanent existence and the corporate nature.
Single Owner: The OPC can be owned by a single individual or it may be the shareholder cum director.
Separate Legal Entity: OPC exists independently with or without its owner and it can possess property, file suit, and have suits filed against it, and it can enter contracts.
Limited Liability: It does not involve putting up personal assets of the owner, in the event of a loss the liability is limited to the amount invested.
Nominee Mandatory: A nominee must be appointed after registering to deal with any eventual step in the event of a sole member's death or incapacitation.
Easy Conversion: OPCs can convert them into a private or public company when a prescribed requirement is achieved (e.g. Larger number of directors/shareholders).
Maximum Directors: Although they should have at least one director, OPCs have the capability of having up to 15 directors.
Easy Management: Decisions can be made at a fast rate because it is the only individual in charge of the choice of business.
‘OPC’ Naming: The name of the company has to include the name (OPC) to indicate its form, e.g., Alpha (OPC) Private Limited.
Exemptions: Non-existence of annual general meetings and many other benefits in terms of compliance with the standard companies.
Limited liability protection
Separate corporate identity
Credibility with banks and clients
Smooth succession via nominee
Exemptions from certain compliances
Ideal for startups, single founders, and freelancers wishing to formalize their business
Obtain Digital Signature Certificate (DSC): This is to allow the signing of documents electronically.
Director Identification Number (DIN): 1 director suggested to be appended to the incorporation.
Name Reservation: File SPICe+ (Part A) online at the Ministry of Corporate Affairs (MCA) portal; use up to two names to be suggested.
Prepare Documents: ID/address proof document of the director, nominee, MOA, AOA, business proof, and PAN.
Filing Incorporation (SPICe+ Part B) & Linked Forms: Upload all documents, nominee consent, and pay fees.
Registrar Review: Approval to Registrar to issue Certificate of Incorporation (with CIN, PAN, TAN) on approval.
Registration Fees: Approximately ₹6,000–₹12,000 government fees plus professional charges, and stamp duty varies by state/authorized capital.
|
Fee Component |
Approximate Cost |
|
Name Reservation |
₹1,000 |
|
Govt Registration |
₹6,000–₹12,000 |
|
Professional Charges |
₹7,000–₹12,000 (if using a consultant) |
|
Stamp Duty |
Varies by state (₹200–₹2,500+) |
|
DSC/DIN |
₹1,500–₹2,500 each |
Section: The definition of OPC is provided in Section 2(62) of the Companies Act, 2013.
Eligibility: It can be registered by any natural person (Indian citizen, resident or non-resident). Minors cannot create any OPC, they also cannot be nominees. One is allowed to be a member or nominee of only one OPC.
|
Feature |
One Person Company (OPC) |
|
|
Legal Status |
Separate the entity from the owner |
Same entity as the owner |
|
Liability |
Limited liability (owner assets protected) |
Unlimited liability (owner assets at risk) |
|
Registration |
MCA, Companies Act, 2013 |
Minimal or no registration, under local laws |
|
Succession |
Perpetual; nominee can continue |
Business ends with owner |
|
Taxation |
Taxed as company (30% profits + surcharge/cess) |
Taxed as individual (as per income slab) |
|
Filings |
Annual ROC filings, corporate compliance |
Basic income tax filings |
|
Fundraising |
Easier to attract investors, issue shares |
Difficult for outside investment |
You should select Instabiz Filling for the registration of your OPC company. The expert team at our organization provides assistance to numerous business entrepreneurs for setup. The company will help you along each step in your journey through document procurement to obtaining your Certificate of Incorporation.
The following list details the benefits you will receive from choosing our services for OPC company establishment.
Our organization keeps its mission intact to deliver unburdened and entirely smooth processes during each OPC and Private Limited Company and LLP registration service. You should start your business enterprise by contacting us right now.
Foreign nationals can be directors or members, but at least one director must be an Indian resident.
A nominee is a person who agrees to take over the company’s affairs in case of the sole member’s death or incapacity, ensuring business continuity.
The registration process typically takes about 7–10 working days once all documents are submitted accurately.
Common documents include identity proof (PAN, Aadhaar, Passport for foreigners), address proof (utility bills, bank statements), registered office proof, nominee consent, and photographs.
Yes, OPCs cannot engage in non-banking financial investment activities and charitable activities as per government regulations.
OPC offers limited liability protection, easy management with a single owner, simplified compliance requirements, perpetual succession, and better credibility than a sole proprietorship.
Any Indian citizen who is at least 18 years old can register an OPC. A single person can be both the sole member and the director of the company.
A One Person Company is a business entity that allows a single individual to own and manage a company with limited liability, combining the benefits of sole proprietorship and a private limited company.
An OPC must file annual returns, hold board meetings, comply with tax documentation, and maintain statutory records as per the Companies Act, but compliance is lighter than private limited companies.
OPCs are taxed like individual companies with corporate tax rates applied on profits. Tax benefits are similar to other private limited companies.
