One Person Company Registration in India
One Person Company (OPC) Registration is the perfect choice for ambitious solopreneurs! And our expert consultants are here to navigate compliance, expansion, nominee selection, and tax considerations, ensuring a smooth journey.
Being a solopreneur, I wanted a company structure that suited my needs. This team not only registered my sole proprietorship firm but also gave me the best advice on how I can save on taxes.
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Right plan for Your Business
Customised plans to suit your business needs.Smart Plan
₹1499 0% off
₹1499
+ Govt. Fee
What you’ll get
- Initial Consultation
- Name Approval
- DSC Assistance
- SPICe+ form
- Directors Identification Number
- Incorporation Certificate
- Company PAN & TAN
Pro Plan
₹3999 0% off
₹3999
+ Govt. Fee
What you’ll get
- Initial Consultation
- Name Approval
- SPICe+ form
- Directors Identification Number
- Incorporation Certificate
- Company PAN & TAN
- Dedicated Business Account Manager
- DSC Assistance with Token
- Digital Welcome Kit after Company Incorporation
- Post Incorporation Consultancy
Premium Plan
Everything within 7 working days
₹7999 0% off
₹7999
+ Govt. FeeWhat you’ll get
- Initial Consultation
- Name Approval
- SPICe+ form
- Incorporation Certificate
- Company PAN & TAN
- Dedicated Business Account Manager
- Digital Welcome Kit after Company Incorporation
- Post Incorporation Consultancy
- Complete DSC
- Expert Consultation Provided (immediate on-call availability)
- INC 22 & INC 20A
Note: All prices are excluding GST. Tax & Government fees should be payable directly to the respective government portal. Also, plan is subject to approval after the discussion of scope of work. All rights reserved by Taxadvisr. T&C
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Who is Eligible for One Person Company?
- Only natural Indian citizens residing in India can register an OPC (NRIs are now eligible).
- You must be 18 years old or older.
Documents Required for OPC Registration
Identity & Address Proof (Directors)
- PAN Card (scanned copy) or Passport (foreign nationals & NRIs)
- Voter ID/Passport/Driving License (scanned copy)
- Latest Bank Statement/Utility Bill (scanned copy) – Electricity, Phone, Mobile
- Passport-sized Photo & Signature (scanned copy) – Signature on blank document (directors only)
Registered Office Proof
- Latest Bank Statement/Utility Bill (scanned copy) – Electricity, Phone, Mobile
- Notarized Rental Agreement (scanned copy, English)
- No-Objection Certificate from Property Owner (scanned copy)
- Sale Deed/Property Deed (scanned copy, English) – For owned property
One Person Company in India
In 2013, the Companies Act introduced the novel concept of One Person Company (OPC) registration, specifically catering to the entrepreneurial spirit of solo individuals in India. This framework provides legal recognition and operational freedom for OPCs to function within the Indian legal system.
An OPC is essentially a company established and managed by a single person. It enjoys all the key features of a traditional company, including limited liability, separate legal entity status, and perpetual succession. For aspiring entrepreneurs seeking a formal business structure, OPCs offer a valuable gateway.
Prior to 2013, solo proprietorships were the only option for individual business owners. The traditional company structure mandated a minimum of two directors and two members. The OPC framework eliminated this barrier, allowing a single individual to establish a company.
Section 2(62) of the Companies Act, 2013 empowers the formation of a company with just one director and one member, who can be the same person. OPCs are also subject to less stringent compliance requirements compared to traditional companies. Furthermore, eligibility for OPC registration extends to both Indian citizens and Non-Resident Indians (NRIs).
The Advantages of One Person Companies (OPCs)
One Person Companies (OPCs) offer a compelling solution for aspiring Indian entrepreneurs embarking on their solo journeys. Here's a breakdown of the key benefits OPCs provide:
Simplified Incorporation
The process is streamlined, requiring just one member (who can also be the director) and a nominee. While a minimum authorized capital of ₹1 Lakh is mandated, there's no minimum paid-up capital requirement.
Separate Legal Entity
OPCs function independently, granting limited liability protection to the single owner. Their personal assets remain shielded from business debts, fostering financial security.
Limited Liability
As a distinct legal entity, an OPC separates its owner's liability from the company's. The shareholder's financial risk is limited to their investment, safeguarding personal assets in case of business losses.
Streamlined Management
With a single owner overseeing operations, decision-making becomes swift and efficient. Passing resolutions is straightforward, requiring only the owner's signature in the minute book. This eliminates potential conflicts arising from multi-party ownership.
Enhanced Credibility & Funding
OPCs hold a recognized legal status, boosting their credibility and attracting potential investors like venture capitalists or angel investors. This facilitates easier access to funding compared to sole proprietorships.
Reduced Compliance
The Companies Act grants OPCs exemptions. They don't need to prepare cash flow statements, and the director can handle annual reports and account books, reducing administrative burdens.
Perpetual Succession
Even with a single owner, OPCs enjoy continued existence. The appointed nominee takes over company management in case of the owner's death or incapacitation, ensuring business continuity.
Features of One Person Company
The One Person Company (OPC) offers a unique structure for individual entrepreneurs seeking independence and legal entity status. Here are some key features:
- Private Company: Classified as a private company under the Companies Act (2013), with a single shareholder.
- Single Member/Shareholder: Unique to OPCs, the company is formed and owned by one person.
- One Director: Requires only one director at incorporation, with a maximum of 15 allowed.
- Nominee: An essential feature, the nominee takes over the company in case of the single member’s death or incapacitation.
- No Minimum Paid-up Capital: Unlike other companies, OPCs are exempt from having a minimum initial investment.
- No Annual General Meetings: OPCs are not required to hold annual meetings for shareholder reviews or planning.
- Higher Director Remuneration: OPCs have more flexibility in director compensation compared to other companies.
- Conversion Option: If the OPC’s paid-up capital exceeds ₹50 Lakhs or annual turnover surpasses ₹2 Crores, it can convert to a private limited company following regulations.
- Exclusive Benefits: OPCs enjoy exemptions and privileges distinct from other private companies.
Documents Required for One Person Company
To ensure a smooth One Person Company (OPC) registration process, the Registrar of Companies (ROC) requires the following documents:
Steps to Register One Person Company
Registering a One Person Company (OPC) in India is a structured process with distinct steps. Here's a concise breakdown of the registration procedure:
Check Your Eligibility & Gather Documents
Verify eligibility and collect necessary documents to kickstart the registration process seamlessly.
Obtain Digital Signature Certificates (DSCs) & Director Identification Numbers (DINs)
Obtain DSCs and DINs to digitally secure and authenticate your identity as a director.
Reserve Your Company Name (SPICe+ Form)
Reserve your unique company name using the SPICe+ form via the MCA portal.
Apply for Permanent Account Number (PAN) & Tax Account Number (TAN)
Apply for PAN and TAN to enable your company’s taxation and financial processes.
Receive Incorporation Certificate with PAN & TAN (RoC)
Receive the Incorporation Certificate along with PAN and TAN from the Registrar of Companies (RoC).
Open a Bank Account & Launch Your Business
Open a business bank account to commence financial operations and officially launch your company.
Tax Implications for OPC
One Person Companies (OPCs) in India are taxed at the same flat 30% rate on net profits as Private Limited Companies (PLCs), along with applicable Minimum Alternate Tax (MAT). However, OPCs have some specific tax considerations:
- No Dividend Distribution Tax (DDT): If the sole shareholder doesn’t draw dividends, no DDT is applicable, offering a tax advantage over PLCs.
- Perquisite Taxation: Perquisites like car allowances provided to the sole director are taxable as part of their salary, similar to any company.
- Fringe Benefit Tax (FBT): Fringe benefits to employees, such as free meals or club memberships, are taxed at 30%.
- Goods and Services Tax (GST): OPCs must comply with GST filing and compliance requirements based on their goods or services category.
- Income Tax Return (ITR): OPCs file ITR using Form ITR-6 by September 30th each financial year.
- Tax Audits: OPCs with turnover exceeding Rs. 2 crore must get their accounts audited by a Chartered Accountant.
TaxAdvisr Registration Package for One Person Company in India
TaxAdvisr offers a comprehensive registration package for setting up a One Person Company in India, which includes:
- Digital Signature Certificate (DSC): Provided online for one of your directors.
- Director Identification Number (DIN): Issued as part of the package. (If shareholders differ from directors, an additional DSC is required for shareholders.)
- Company Name Assistance: Our business experts will help you decide on the company name.
- Comprehensive Documentation: This includes PAN and TAN registration, drafting the Articles of Association, paying government stamp duty, and the certificate of incorporation fee.
- Regulatory Approvals: We obtain the name approval certificate and handle the registration for GST, PF, ESI, and PT (only applicable in Maharashtra) with utmost care and speed.
One Person Company FAQs
A One Person Company (OPC) is a type of business entity that allows a single individual to operate and manage the company. It was introduced in India to provide a platform for entrepreneurs who want to start a company with the benefits of limited liability.
- Only one shareholder who is the sole owner and director.
- Limited liability protection for the owner.
- No minimum number of directors required.
- Perpetual succession, unaffected by the owner’s death or incapacitation.
- Not allowed to raise funds from the public through share issuance.
- One Person Company (OPC): Single shareholder, limited liability, no minimum directors.
- Limited Liability Partnership (LLP): Two or more partners, limited liability for partners.
- Private Limited Company (Pvt Ltd): Minimum of two shareholders and directors, ability to raise funds through shares.
Only a natural person who is an Indian citizen and resident in India can form an OPC. Additionally, an individual cannot be a member of more than one OPC simultaneously.
- The owner must be an Indian citizen and resident in India.
- Cannot have more than one shareholder.
- No minimum authorized capital requirement.
- Must include “One Person Company” in its name.
- Identity and address proofs of the owner/director(s).
- Address proof of the company’s registered office.
- Memorandum of Association (MOA) and Articles of Association (AOA).
- Consent to act as a director from the owner/director(s).
- NOC (No Objection Certificate) from the property owner of the registered office.
Yes, OPC can have directors, but it must have a minimum of one director at all times. The sole shareholder is also the director by default.
- Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the proposed director.
- Choose a suitable name adhering to naming guidelines.
- Prepare necessary documents, including MOA, AOA, and address proofs.
- File the application for OPC registration with the Registrar of Companies (ROC).
- Pay required registration fees and stamp duty.
- Once approved, the ROC will issue a Certificate of Incorporation, and the company will be officially registered.
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Testimonials
Hear what our clients are saying…
Being a solopreneur, I wanted a company structure that suited my needs. This team not only registered my sole proprietorship firm but also gave me the best advice on how I can save on taxes.
Anjali Sharma
Owner of Anjali Creations OPC Pvt Ltd.Running a business alone is tough, but registering it shouldn’t be. The Tax Advisr team has proved that! Best decision ever!
Kunal Arora
CEO of Arora Ventures OPC Pvt Ltd.All I want to say is that the process was smooth, the team was super helpful, and the registration process was totally hassle-free! Super happy with the work.
Rohan Mehta
Founder of Mehta Solutions OPC Pvt Ltd.1,000 customers and counting!
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