One Person Company Registration
Enjoy the benefits of a company structure with single ownership
What is a One Person Company?
A One Person Company (OPC) is a type of company structure introduced in the Companies Act, 2013, that allows a single person to establish a company with limited liability protection. It combines the benefits of a sole proprietorship with the advantages of a private limited company.
An OPC is a separate legal entity distinct from its owner, providing limited liability protection while allowing complete control over the business. It's ideal for entrepreneurs, professionals, and small business owners who want to operate with a formal company structure but don't want or need multiple shareholders.
Benefits of One Person Company
Limited Liability Protection
Your personal assets are protected as the liability of the member is limited to the amount unpaid on shares held by them.
Separate Legal Entity
An OPC is a separate legal entity that can own assets, enter into contracts, and sue or be sued in its own name, distinct from its owner.
Perpetual Succession
The company continues to exist regardless of changes in membership. In case of the member's death or incapacity, the nominated person can take over.
Complete Control
As the sole shareholder, you have complete control over all business decisions without having to consult with other shareholders.
Less Compliance Burden
OPCs have fewer compliance requirements compared to other company structures. They are exempt from holding AGMs and have relaxed provisions for board meetings.
Better Credibility
Operating as a company enhances your business credibility with customers, suppliers, and financial institutions, making it easier to access credit and business opportunities.
Registration Process
Apply for Digital Signature Certificate (DSC)
Obtain a DSC for the director of the OPC, which is required for filing documents with the Ministry of Corporate Affairs (MCA).
Obtain Director Identification Number (DIN)
Apply for a DIN for the director through the MCA portal. This is a unique identification number assigned to an individual who is a director of a company.
Name Approval
Apply for name approval through the SPICe+ form on the MCA portal. Ensure the name is unique and complies with the naming guidelines.
File Incorporation Documents
Submit the incorporation documents including the Memorandum of Association (MOA), Articles of Association (AOA), and other required forms through SPICe+.
Pay Registration Fees
Pay the required government fees for incorporation, which varies based on the authorized capital of the company.
Receive Certificate of Incorporation
After successful verification, the MCA issues a Certificate of Incorporation with a Corporate Identity Number (CIN), officially establishing your OPC.
Documents Required
For the Director/Member
- PAN Card of the director/member
- Aadhaar Card of the director/member
- Passport-sized photographs
- Residential address proof
- Mobile number and email ID
For the Nominee
- PAN Card of the nominee
- Aadhaar Card of the nominee
- Passport-sized photographs
- Residential address proof
- Consent of the nominee in Form INC-3
Compliance Requirements
Annual Financial Statements
Prepare and file annual financial statements including the Balance Sheet, Profit & Loss Account, and Cash Flow Statement.
Annual Return
File an annual return with the Registrar of Companies (ROC) within 60 days from the conclusion of the financial year.
Income Tax Return
File annual income tax returns for the company by the due date. OPCs are taxed at the same rate as private limited companies.
Board Meetings
Hold at least one board meeting in each half of the calendar year with a gap of not less than 90 days between the two meetings.
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Get Expert AssistanceFrequently Asked Questions
Who can form a One Person Company?
Only a natural person who is an Indian citizen and resident in India can form an OPC. A person can be a member of only one OPC at any given time.
What is the role of a nominee in an OPC?
A nominee is a person who, in the event of the member's death or inability to contract, becomes the member of the OPC. The nominee must give their consent in writing to become a nominee and can withdraw their consent by giving a written notice.
Can an OPC be converted to another type of company?
Yes, an OPC can be voluntarily converted into a private or public company after two years from the date of incorporation. However, if the paid-up capital exceeds ₹50 lakhs or the average annual turnover exceeds ₹2 crores, it must be converted into a private or public company within 6 months.
What are the tax implications for an OPC?
An OPC is taxed like a private limited company at a flat rate of 30% plus applicable surcharge and cess. However, OPCs with a turnover of up to ₹400 crores can avail a reduced tax rate of 25%. Additionally, the member can draw a salary from the OPC, which is a deductible expense for the company.