One Person Company Registration

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OVERVIEW

What is One Person Company?

To understand the concept of a One Person Company (OPC), it’s important to recognize the distinct identity it offers. OPC registration grants corporate status and several benefits to its sole member and director. Unlike a traditional Private Limited Company, which requires a minimum of two members, an OPC allows a single individual to enjoy the advantages of incorporation. Introduced under the Companies Act, 2013, this structure was designed to remove the limitations faced by solo entrepreneurs. The registration process for an OPC is streamlined and can be completed online.

An OPC is characterized by having only one shareholder who holds 100% ownership of the company. To ensure business continuity, appointing a nominee is mandatory—this person steps in if the owner passes away or becomes incapacitated. Despite having just one member, an OPC is legally treated as a type of Private Limited Company.

BENEFITS
 

Benefits of One Person Company Registration

Separate Legal Existence

A One Person Company (OPC) is recognized as a separate legal entity, distinct from its owner. Unlike a proprietorship, OPC registration ensures that the business and the individual are legally separate. This allows the OPC to own assets in its own name, enter into contracts, and conduct operations independently of the owner. This separation and legal independence are among the key advantages of registering an OPC.

Lower Compliance Requirements

A One Person Company (OPC) enjoys several compliance exemptions compared to a Private Limited Company. Requirements such as holding General and Board Meetings do not apply when there is only one director. However, if the Board consists of more than one director, holding Board Meetings becomes mandatory.

Limited Liability of Owners

One of the key advantages of registering a One Person Company (OPC) is that it operates as a separate legal entity. This means the sole member’s personal assets are not liable for the company’s debts or obligations. The member’s liability is limited only to the unpaid portion of the capital they have subscribed. Even in the event of the company’s liquidation, the member’s personal assets remain protected—except in specific situations outlined by law.

Separation of Management and Ownership

Although a One Person Company (OPC) is owned by a single individual, the owner can appoint a director to manage and oversee the day-to-day operations of the business. This allows the owner to delegate operational responsibilities while focusing on other ventures or business interests. Despite the delegation, the sole shareholder retains full control and ownership of the company as the only stakeholder.

ONLINE REGISTRATION

Documents Required for Online OPC Registration

PAN Card

Identity Proof

Director’s Address Proof

Photograph

Business Address Proof

NOC from owner

Rent Agreement

One Person Company Name Format and Formulation

Unique Name

Business Object

Constitution Type

Online Registration

One Person Company Registration

*Subject to Government processing time

The Process

Process to register OPC online

Private Limited Company
One Person Company
Limited Liability Partnership
Partnership Firm
Proprietorship Firm
Applicable Law
Companies Act, 2013
Companies Act, 2013
Limited Liability Partnership Act, 2008
Indian Partnership Act, 1932
No specified Act
Registration
Mandatory
Mandatory
Mandatory
Optional
No
Applicable Law
Companies Act, 2013
Companies Act, 2013
Limited Liability Partnership Act, 2008
Indian Partnership Act, 1932
No specified Act
Number of Owners
2 – 200
Only 1
2 – Unlimited
2 – 50
Only 1
Separate Legal Entity
Yes
Yes
Yes
No
No
Liability Protection
Limited
Limited
Limited
Unlimited
Unlimited
Statutory Audit
Mandatory
Mandatory
As Applicable
Not Mandatory
Not Mandatory
Ownership Transfer
Yes
Yes (Restricted)
Yes
Yes (Restricted)
No
Perpetual Existence
Yes
Yes
Yes
No
No
Foreign Ownership
Allowed
Not Allowed
Allowed
Allowed
Not Allowed
Taxation Liability
Moderate
Moderate
High
High
Low
Compliance Requirement
High
High
Moderate
Low
Low
Frequently Asked Questions

Explore One Person Company Registration

The prerequisites to register an OPC in India are:

  1. Shareholder must be an individual and Indian resident.

  2. At least one director, who is an Indian resident, must be appointed.

  3. A nominee, above 18 years and Indian resident, must be appointed.

  4. Provide a registered office address as the place of business.

No minimum paid-up capital is required for OPC registration now.
The starting business amount must be subscribed during registration.
The subscriber must hold at least one share.
A minimum Authorized Capital of INR 1 Lakh is mandatory.

Only an individual can be a member of an OPC.
Must be an Indian resident over 18 years old to form an OPC.
Indian residency means spending at least 182 days in India the previous year.
A person can only be a member of one OPC at any time.

The nominee must be at least 18 years old, an Indian resident, and provide consent for their appointment.

Any natural person over 18 can become a director after obtaining a Director Identification Number (DIN).
There are no citizenship or residency restrictions, so foreign nationals are eligible.
DIN allotment is now combined with the company formation application.
A maximum of 3 DINs can be applied for during this process.

Director Identification Number (DIN) is a unique number issued by the Ministry of Corporate Affairs to individuals upon application.
It enables a person to become a Director in a company or a Designated Partner in an LLP.

A Digital Signature Certificate (DSC) is issued as a token by Certified Authorities.
All online OPC registration forms must be submitted with the applicant’s DSC.
Directors need a DSC for DIN applications.
Nominee and shareholder must also have DSCs to submit incorporation e-forms.

Authorized capital is the maximum capital a company can raise by issuing shares.
Paid-up capital is the actual amount paid by shareholders for those shares.
An OPC in India can be registered with any paid-up capital amount,
which must be less than or equal to the authorized capital.

Yes, an OPC can operate multiple businesses if listed in its MoA and approved by the registrar.
The businesses must be related and within the same field.
Unrelated activities, like fashion designing and event management or construction, cannot be registered under one company.

Yes, a company can be registered at a commercial or residential address with valid proof.
The registered office is where MCA and other authorities send official communication.
This address is also displayed on the Ministry’s portal.

No, only individuals can be members or nominees in an OPC.
A body corporate seeking 100% ownership must register a wholly owned subsidiary.

 

No, the shareholder must be an Indian resident to register an OPC.

No, neither members nor directors need to be physically present as OPC registration is fully online.
All forms are filed on the web portal and digitally signed.
Required documents can be emailed or uploaded on our portal for submission.

An OPC can convert into a Private or Public Company after 2 years from incorporation, unless mandatory conversion applies.

An OPC must convert to a Private or Public Company if its paid-up capital exceeds ₹50 lakh or its average annual turnover exceeds ₹2 crore.
This mandatory conversion applies regardless of the OPC’s age.

After registration, the company must promptly:
• Open a current account.
• Appoint a statutory auditor.
• Deposit the paid-up capital declared at registration.
• Issue and allot shares.

Each financial year, companies with more than one director must hold board meetings.
Accounts and financial statements must be audited by an independent auditor.
The company must file Form AOC-4 and MGT-7 as part of annual compliance within the deadline.

Daily business transactions are recorded in the company’s Books of Accounts by accountants.
An independent auditor verifies these accounts to ensure statutory compliance and issues an audit report.
(Note: submitreturn.com is responsible only for the accounting services they provide but will assist in appointing an independent auditor.)

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ONE PERSON COMPANY REGISTRATION

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