One Person Company Registration

One Person Company Registration

Ideal for solo entrepreneurs seeking limited liability, streamlined management, and a professional business structure
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What is One Person Company

A One Person Company (OPC) in India is a unique business structure that allows a single individual to operate as a company with limited liability. Introduced under the Companies Act 2013, OPC is ideal for solo entrepreneurs who wish to gain the advantages of a corporate entity without the complexities of partnerships or larger companies. Unlike traditional sole proprietorships, an OPC protects the owner’s personal assets from business liabilities. Additionally, the OPC structure enables easier compliance and offers tax benefits, making it a favourable option for startups and small businesses. Only one shareholder is permitted, but a nominee must be appointed in case of unforeseen circumstances. OPCs also have limited requirements for board meetings and filings, simplifying the administrative burden. However, once the company’s turnover exceeds a certain threshold, it must convert to a private limited company, ensuring scalability as the business grows. 

Eligibility Criteria for OPC Registration 

Indian Citizenship

Only a natural person who is an Indian citizen and a resident of India can register an OPC. The individual must have been residing in India for at least 182 days in the preceding fiscal year.

Single Member

An OPC can only have one member or shareholder. This individual must appoint a nominee who will take over the company’s responsibilities in case of their incapacity or death.

Nominee Appointment

The nominee must also be an Indian citizen and resident. This person is essential to ensure the continuity of the OPC.

No Minors

Minors are not allowed to form or be part of an OPC in India.

Business Limitations

OPCs cannot engage in Non-Banking Financial Investment activities or own/operate investment businesses.

Benefits of One Person Company Registration

Limited Liability

The personal assets of the owner are protected from business liabilities. The shareholder’s liability is limited to the investment made in the company.

Separate Legal Entity

An OPC has its own legal identity, separate from the owner, allowing it to own property, enter contracts, and sue or be sued in its name.

 Ease of Compliance

OPCs have fewer regulatory requirements compared to private limited companies. For example, there’s no need to hold annual general meetings (AGMs).

Tax Benefits

OPCs can avail several tax deductions and exemptions available to private limited companies, making them financially efficient.

Continuity of Business

The appointment of a nominee ensures business continuity in case of the owner’s death or incapacitation.

Increased Credibility

Registered as a corporate entity, OPCs tend to have better credibility with banks, investors, and clients, enhancing their business prospects.

Benefits of One Person Company Registration

PAN Card
Identity Proof
Business Address Proof
Passport size photograph
Utility Bills
Rental Agreement
No-Objection Certificate 

Process to Register One Person Company in India

1. Apply for Digital Signature Certificate (DSC)

The director must first obtain a DSC by submitting documents like address proof, Aadhaar Card, PAN card, photo, email ID, and phone number. The director must first obtain a DSC by submitting documents like address proof, Aadhaar Card, PAN card, photo, email ID, and phone number.

2. Director Identification Number (DIN)

Apply for the DIN in the SPICe+ Form. If there are multiple directors (up to 3), Form DIR-3 can be used to apply for their DINs along with name and address proof.

3. Name Approval in SPICe+ Form

Submit Form SPICe+ 32 to propose the company name. If the name is rejected, resubmit the application with a new name.

4. Prepare Incorporation Documents

 Submit the required documents, including the Memorandum of Association (MOA) and Articles of Association (AOA), along with the DSC and DIN on the MCA portal.

5. Certificate of Incorporation

After verification, the Registrar of Companies (ROC) will issue the Certificate of Incorporation, allowing the business to commence.

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