No, only individuals can be members or nominees in an OPC.
A body corporate seeking 100% ownership must register a wholly owned subsidiary.
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A One Person Company (OPC) is a business structure that provides a distinct corporate identity to a sole entrepreneur. OPC registration grants corporate status along with several benefits to its single member and director. Unlike a traditional Private Limited Company, which requires a minimum of two members, an OPC allows one individual to enjoy all the advantages of incorporation. Introduced under the Companies Act, 2013, this structure was designed to overcome the challenges faced by solo entrepreneurs, and the registration process is streamlined and fully online.
An OPC has only one shareholder who holds 100% ownership. To ensure business continuity, a nominee must be appointed to take over in case of the owner’s death or incapacity. Despite having a single member, an OPC is legally recognized as a type of Private Limited Company.
A One Person Company (OPC) is a separate legal entity, distinct from its sole owner. Unlike a proprietorship, OPC registration ensures the business and the individual are legally independent. This allows the OPC to own assets, enter into contracts, and operate in its own name. This legal separation and autonomy are among the primary advantages of registering an OPC.
A One Person Company (OPC) benefits from several compliance exemptions compared to a Private Limited Company. For instance, requirements like holding General and Board Meetings do not apply when there is only one director. However, if the OPC has more than one director on the Board, conducting Board Meetings becomes mandatory.
A major advantage of registering a One Person Company (OPC) is that it functions as a separate legal entity. This ensures that the sole member’s personal assets are protected from the company’s debts or obligations. Liability is limited only to the unpaid portion of the capital subscribed by the member. Even in the event of liquidation, the member’s personal assets remain safe, except in specific circumstances defined by law.
Although a One Person Company (OPC) is owned by a single individual, the owner can appoint a director to manage daily business operations. This enables the owner to delegate operational tasks while focusing on other ventures or priorities. Despite this delegation, the sole shareholder retains full control and ownership as the company’s only stakeholder.
PAN card is required for the shareholder, nominee, and any directors.
The shareholder, nominee, and directors must provide an Aadhaar card along with a Voter ID, Passport, or Driving License.
The shareholder, nominee, and directors must submit a recent telephone bill, electricity bill, or bank account statement as address proof.
Recent passport-sized photographs of the shareholder, nominee, and directors are required.
A recent electricity or telephone bill of the registered office address is required as proof
Secure a No Objection Certificate (NOC) from the owner(s) of the registered office property.
Submit the rent agreement of the registered office, if applicable.
A One Person Company (OPC) name must be unique and is ideally a coined or original word.
The latter part of the OPC name should reflect the company’s primary business activity.
The company name must include the mandatory suffix “(OPC) Private Limited
The prerequisites to register an OPC in India are:
Shareholder must be an individual and Indian resident.
At least one director, who is an Indian resident, must be appointed.
A nominee, above 18 years and Indian resident, must be appointed.
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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