One Person Company (OPC) Registration Online

What is a One Person Company?

A One Person Company (OPC) is a company with a single member, introduced by the Companies Act, 2013. It combines the control of a sole proprietorship with the limited liability and separate legal identity of a company. Your personal assets stay protected from business debts, and the business can sign contracts, own property and open bank accounts in its own name. One person company registration suits solo founders, freelancers and consultants who want a company structure without bringing in a partner.

Who can form an OPC?

• Only a natural person who is an Indian citizen – resident in India or not – can be the member of an OPC.
• The member must name a nominee, also an Indian citizen, who becomes the member if the original member dies or becomes incapacitated. The nominee's written consent is filed with the application.
• A person can be a member of only one OPC, and a nominee in only one OPC, at a time.
• An OPC has one member but can have between 1 and 15 directors; the member is usually also the director.
• An OPC cannot carry on non-banking financial activities, invest in other companies' securities, or be formed as a non-profit (Section 8) company.

Since 2021 there is no limit on an OPC's capital or turnover, and an OPC can convert into a private limited company whenever it wants to.

How OPC registration works

1. Digital signature – the director gets a Digital Signature Certificate.
2. Name approval – the name must end with "(OPC) Private Limited" and is reserved through SPICe+ Part A.
3. Incorporation filing – SPICe+ Part B is filed with the e-MOA, e-AOA, the nominee's consent (Form INC-3), the director's declarations and registered office proof.
4. Linked registrations – PAN, TAN, EPFO, ESIC and the bank account are applied for through AGILE-PRO-S.
5. Certificate of incorporation – issued with the CIN, usually within 7–12 working days.

Benefits of an OPC

• Limited liability – your personal assets are not at risk for business debts.
• Full control – no partners or co-founders needed to take decisions.
• Credibility – banks, clients and vendors prefer dealing with a registered company.
• Lighter compliance than a private company – no annual general meeting, and board meetings are not required while there is only one director.
• Room to grow – the OPC can convert into a private limited company when you bring in partners or investors.

OPC vs sole proprietorship

If you want the lowest compliance and your business is small, a sole proprietorship may be enough. If you plan to bring in a co-founder soon, start directly with a private limited company.

Annual compliance for an OPC

An OPC is a company, so it has yearly obligations, though fewer than a private limited company:

• Statutory audit of the accounts by a chartered accountant, every year.
• Financial statements (AOC-4) – due within 180 days of the end of the financial year.
• Annual return (MGT-7A) with the Registrar of Companies.
• Income tax return of the company, and DIR-3 KYC for the director when due.
• INC-20A (declaration of commencement of business) within 180 days of incorporation.

Our annual ROC compliance service covers these filings so you can focus on the business.

How an OPC is taxed

An OPC is taxed like any other company – at a flat rate on profits rather than the owner's slab rates. Under the concessional regime the rate is 22% (about 25.17% including surcharge and cess). Salary paid to the director is a business expense for the company and taxed as salary in the director's hands, which often makes an OPC more tax-efficient than a proprietorship once profits grow.