A One Person Company (OPC) is the ideal business structure for solo entrepreneurs, freelancers, and consultants who want limited liability protection without a partner. At Instabizfilings, we register your OPC in India completely online with CA-verified documentation, MCA filing, and Certificate of Incorporation delivered in just 7–10 working days. Packages start at ₹6,499 (all-inclusive, no hidden charges).
The concept of a One Person Company (OPC) is a revolutionary step in the evolution of business structures, especially for individual entrepreneurs. Traditionally, starting a company required at least two members, but OPC changed this by allowing a single individual to establish and run a company with limited liability.
In India, OPC was introduced under the Companies Act, 2013 to encourage small entrepreneurs, professionals, and startups to enter the corporate framework without the need for partners. It provides the advantages of a company such as limited liability, separate legal identity, and perpetual succession while maintaining the simplicity of a sole proprietorship.
A One Person Company (OPC) is a type of company that is formed with only one member (shareholder) and can have only one director (though it can appoint more if required).
According to Section 2(62) of the Companies Act, 2013, an OPC is defined as:
“A company where there is a single individual member.”
This structure enables a single entrepreneur to operate a corporate entity without sharing ownership or control.
OPC, as a separate legal entity, can:
Own assets
Enter into contracts
Sue or be sued in its own name
The nominee plays a critical role in OPC:
Appointed at the time of incorporation
Takes over ownership in case of death/incapacity of the owner
Must give written consent
Can withdraw consent anytime
The member can also change the nominee by following legal procedures.
Compared to sole proprietorship, OPC enjoys higher trust among:
Banks
Investors
Clients
Although limited compared to large companies, OPC can:
Take loans
Attract investors (by converting into a private limited company)
Transformation of OPC into a limited company of type of private is necessary in the event of:
Paid-up capital exceeds ₹50 lakh, or
Turnover exceeds ₹2 crore
Though less than companies, OPC still requires:
Maintenance of records
|
Feature |
OPC |
Sole Proprietorship |
|
Legal Status |
Separate entity |
Not separate |
|
Liability |
Limited |
Unlimited |
|
Ownership |
One person |
One person |
|
Registration |
Mandatory |
Not mandatory |
|
Continuity |
Perpetual |
Ends with owner |
|
Credibility |
High |
Low |
|
Feature |
OPC |
Private Limited Company |
|
Members |
1 |
Minimum 2 |
|
Directors |
1 |
Minimum 2 |
|
Compliance |
Low |
High |
|
Growth Potential |
Limited |
High |
|
Fundraising |
Difficult |
Easier |
There is no capital limit in which OPC can be established.
Entire shareholding belongs to one person
Shares cannot be publicly traded
Presided over by one director or more (on appointment).
No requirement to hold Annual General Meeting (AGM)
OPC is not taxed with a tax on an individual, but it is taxed as a limited company privately
Tax Rate: 22% (plus surcharge and cess) under the new tax regime (subject to conditions)
No tax benefits like individual slab rates
Dividend taxable in hands of shareholder
Other Tax Aspects
Must file Income Tax Return annually
Subject to GST if applicable
Even though OPC enjoys relaxed compliance, it must follow certain rules:
Required when:
Paid-up capital exceeds ₹50 lakh, or
Annual turnover exceeds ₹2 crore
Alter MOA & AOA
Increase number of members/directors
File required forms with ROC
OPC can be closed through:
Ordered by tribunal due to:
Insolvency
Legal violations
OPC is suitable for:
Freelancers (designers, writers, developers)
Consultants and professionals
Small traders and entrepreneurs
Startup founders testing business ideas
OPC plays a significant role in promoting entrepreneurship:
Encourages individuals to formalize businesses
Reduces risks associated with sole proprietorship
Supports government initiatives like Startup India
Boosts economic growth and innovation
It provides a stepping point to small businesses to grow into the sphere of big corporations.
| Package | Professional Fees | Govt. Fees | Total |
| Starter Package | ₹ 5999/- | ₹ 2500/- | ₹ 8499/- |
| Growth Package | ₹ 8999/- | ₹ 2500/- | ₹ 11499/- |
| Elite Package | ₹ 13998/- | ₹ 2500/- | ₹ 16498/- |
Ready to start your own business? Explore our guide on One Person Company registration, covering everything you need to know for a smooth process.
PAN Card of the owner
Aadhaar Card of the owner
Identity Proof (Voter ID / Passport / Driving License)
Address Proof (Bank Statement or Electricity Bill)
Utility Bill of Registered Office Address
Rent Agreement + NOC (if rented office)
Memorandum of Association (MOA)
Articles of Association (AOA)
Nominee Consent Letter (INC-3)
| Type | Ownership | Liability | Compliance | Taxation |
|---|---|---|---|---|
| OPC | Single owner | Limited | Low | Same as individual |
| LLP | 2+ partners | Limited | Medium | Same as partnership firm |
| Pvt Ltd | 2+ shareholders | Limited | High | Corporate tax rate |
With Instabizfilings, OPC registration is completed in 7-10 working days after document submission, subject to MCA processing time.
Yes, a salaried individual who is an Indian citizen and resident can form an OPC. There is no restriction on having employment elsewhere.