What is a One Person Company (OPC)?

A One Person Company (OPC) is a type of business entity introduced under the Companies Act, 2013 in India. It allows a single entrepreneur to operate a corporate entity with limited liability and complete control. OPC is an ideal business structure for solo founders who want to enjoy the benefits of a private limited company without involving partners.

Key Features of One Person Company

• Single Owner: Only one individual can act as both shareholder and director.
• Limited Liability: The owner’s liability is limited to the capital invested.
• Separate Legal Entity: OPC has its own legal identity, distinct from its owner.
• Minimum Compliance: Compared to other company types, OPC has fewer regulatory burdens.
• Perpetual Succession: The company continues to exist even after the owner’s demise (with nominee).

Benefits of OPC Registration

Registering your business as a One Person Company offers several advantages:

1. Limited Liability Protection

You’re not personally liable for company debts or losses. Your liability is restricted to the amount invested in the company.

2. Complete Control

You retain 100% control over the business decisions, unlike LLPs or private limited companies with multiple partners.

3. Better Credibility

An OPC gains more trust from vendors, lenders, and customers compared to a sole proprietorship.

4. Easy Fundraising

As a registered company, you have better chances to raise funds from banks, venture capitalists, or financial institutions.

5. Easy to Manage

With only one person at the helm, decision-making and execution become faster and smoother.

Who Can Register an OPC?

You can register an OPC in India if:

• You are a resident Indian citizen.
• You are not a minor.
• You do not own more than one OPC.
• You appoint a nominee (who is also a resident Indian) in case of your death or incapacity.

Documents Required for OPC Registration

To register a One Person Company, you’ll need the following documents:

1. Identity Proof of the Director/Owner

• PAN Card (mandatory)
• Aadhar Card
• Voter ID/Passport/Driving License

2. Address Proof

• Electricity Bill
• Telephone Bill
• Bank Statement (not older than 2 months)

3. Registered Office Proof

• Rent Agreement or Ownership Deed
• NOC from the property owner
• Utility bill of the registered address

4. Nominee Details

• PAN, Aadhar, and address proof of the nominee
• Consent letter in Form INC-3

Step-by-Step Process of OPC Registration

Step 1: Obtain Digital Signature Certificate (DSC)

The director and nominee must get a DSC to sign electronic documents.

Step 2: Apply for Director Identification Number (DIN)

DIN is needed for the proposed director.

Step 3: Reserve Company Name (RUN Form)

Choose a unique name and get it approved through the RUN (Reserve Unique Name) service.

Step 4: Draft MOA & AOA

Memorandum of Association (MOA) and Articles of Association (AOA) define the company’s objectives and rules.

Step 5: File SPICe+ Form

File the incorporation application using the SPICe+ form on the MCA portal.

Step 6: PAN & TAN Application

Apply for the company’s PAN and TAN along with incorporation.

Step 7: Certificate of Incorporation

Once verified, you’ll receive the Certificate of Incorporation, and your OPC is officially registered.

OPC Compliance Requirements

Although OPCs enjoy relaxed compliance, here are a few mandatory ones:

• Maintain proper books of accounts
• Annual filing of financial statements and returns
• Conduct statutory audit
• File Income Tax Returns
• Appoint a Company Secretary (only if turnover exceeds ₹2 crore)