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One Person Company

Key Highlights

  • OPC is registered with Registrar of Companies (RoC) under Ministry of Companies (MCA)
  • It has a separate legal entity distinct form its promoter
  • One Person Company can be incorporated by a natural resident person
  • One nominee director needs to be appointed in the event of disability of original promoter
  • The status of OPC is lost in the event of average turnover of three years exceeds INR 2 crores or paid up share capital is more than INR 50 lakhs. Its compulsory to convert it into Private Limited Company
  • It can be started with a minimum share capital of Rs. 1,00,000
  • This type of organisation is suitable & preferable to single promoter seeking limited liability protection & access to funds, apart from ease of transfer-ability of shares

One Person Company or OPC is a new structure to form business by a single entrepreneur with limited liability. Regulated by Companies Act, 2013 in India

The companies Act, 2013 introduced in the concept of one person company in India. The introduction of OPC to support business person. The benefit of one person company is that the members in the company can be one while in private limited company the minimum member should be two. 

One person company is a different and boost up concept introduced in India, it impacts on the economy and development of nation. OPC gives opportunity to new minds and ideas to start their own business. 

One person company is a separate legal entity from its members, promoters, offering limited liability protection to its sole shareholders, while having continuity of business and being easy to incorporate. 

Why OPC? 

  • One member company
  • Separate legal entity
  • Does Not affect change in ownership by death of member
  • Limited liability of members
  • Minimum paperwork required 
  • No many compliances

Advantage & Benefit of One Person Company

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Sole Entrepreneur

A natural resident person can incorporate a One Person Company & obtain corporate identity as like of private limited company.

Separate legal entity distinct from its promoter

One Person Company is a separate legal entity distinct from its promoter & in case of insolvency promoteris not personally liable.

Limited Liability

The liability of promoter is limited similar to private limited company.

Enhanced Borrowing Capacity

Banks & other financial institution rely & put more trust with regard to capacity & creditworthiness of One Person Company than sole proprietorship.

Artificial Judicial Person

OPC can own property & enter into contracts.
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Perpetual Succession

It means that One Person Company remains in existence even in case of death of single promoter as the ownership of shares are transferred to its nominee.
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Transparency

One Person Company are subjected to certain compliance & also information is easily available in public domain particularly on Ministry of Corporate Affairs website make it transparent for stakeholders.

Reliable, Reputation, Brand Value

Due to compliance, transparency & information in public domain, One Person Company place reputation, brand value & reliability in the eyes of stakeholders.

Compare Options

BasisPrivate Limited CompanyLimited Liability PartnershipOne Person CompanyPartnership FirmSole Proprietorship
Business Formation10-15 Days10-15 Days10-15 Days21 Days1-2 Days
Act / LegislationCompanies Act 2013LLP Act 2008Companies Act 2013Partnership Act 1932Not Applicable
Registering AuthorityROC under MCAROC under MCAROC under MCARegistrar of Partnership under Local SDM OfficeNot Applicable
Legal StatusArtificial judicial person with limited liabilitySeparate legal entity with limited liabilityArtificial judicial person with limited liabilityPartners are personally liable with unlimited liabilityPromoter is personally liable with unlimited liability
Members RequiredMinimum - 2
Maximum - 200
Minimum - 2
Maximum - No Limit
Just One Person with one nomineeMinimum - 2
Maximum - 100
Just One Person
Suitable ForStart-upsProfessional firmsIndividual promotersFamily businessesSmall businesses
Taxation BenefitsCertain benefits EfficientBenefitsLowestIndividual slab rate
Compliance ApplicabilityAudit Report, Annual Return, other compliance as per actAnnual Return, Audit report if turnover exceed Rs. 40 lac's in FY or contribution exceeds Rs.25 lacsAudit Report, Annual Return, other compliance as per actAudit Report only as per Income Tax ActAudit Report only as per sec 44AB of Income Tax Act
Investors InclinationMost attractiveNot preferableUnlikelyUnlikelyNo way
Perpetualty
YesYesYesNoNo

Package & Pricing

Documents for Online Registration of OPC

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PAN of Directors/Subscribers to Memorandum

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ID Proof of Directors/ Subscribers to Memorandum – DL/Voter ID/ Passport (Any one)

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Address Proof of Directors/ Subscribers to Memorandum – Latest 2 month – Telephone/Mobile/Electricity bill/Bank Statement (Any one)

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Photo of Directors/ Subscribers to Memorandum

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Email ID of Directors/Subscribers to Memorandum

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Mobile Number of Directors/Subscribers to Memorandum

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Place of Business Address Proof with NOC (Ownership/ Rent Agreement/ Lease deed/ Consent Letter

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Electricity bill of place of business (Latest 2 months)

FAQs

How many members are required to start One Person Company (OPC)?
OPC in India can be registered with only one resident individual who can be shareholder and director both. Other than one shareholder and director, one resident individual is also appointed as nominee at the time of registration.
Can members and directors be same in OPC?
Yes, shareholder and director can be same individual in OPC. Apart from him, one resident individual is appointed as nominee.
What is minimum capital requirement for registration of OPC in India?
There is no requirement of minimum capital for registration of OPC in India but at least one share must be subscribed at the time of registration.
Who can be a member and nominee in an OPC in India?

Only a resident individual above the age of 18 years is eligible to become a member of an OPC. A body corporate or any one other than resident individual like NRI or foreigners are barred from forming an OPC in India. A nominee also must be resident individual above the age of 18 years.