A One Person Company (OPC) is a unique business structure introduced under the Companies Act, 2013 that allows a single individual to own and manage a company with limited liability.
It provides the benefits of a Private Limited Company while maintaining the simplicity of a Sole Proprietorship.
2. Key Features
1. Only one shareholder (owner).
2. Must have one nominee (to take over in case of death/incapacity of the owner).
3. Separate legal entity distinct from the owner.
4. Limited liability protection.
5. Governed by the Ministry of Corporate Affairs (MCA).
3. Eligibility Criteria
- Eligibility Criteria.PNG (13.08 KiB) Viewed 67 times
1. Limited liability protection.
2. Separate legal identity.
3. Easy to raise funds and loans.
4. Full control of ownership.
5. Easier conversion to Private Limited Company.
5. Documents Required
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Step 1: Obtain Digital Signature Certificate (DSC)
The first step is to get a DSC for the director and nominee.
It is needed to digitally sign documents on the MCA portal.
Apply through authorized agencies like eMudhra, Sify, or NSDL.
Time: 1–2 working days
Step 2: Apply for Director Identification Number (DIN)
DIN is a unique identification number for company directors.
You can apply for it through the SPICe+ (INC32) form while registering your OPC.
Time: Instant (if Aadhaar verified)
Step 3: Choose a Company Name
The name must be unique and end with “(OPC) Private Limited.”
Apply using the RUN (Reserve Unique Name) service on the MCA portal.
Ensure it doesn’t conflict with any existing trademark or company name.
Apply here: https://www.mca.gov.in
Time: 1–2 working days
Step 4: Draft the Memorandum (MOA) and Articles of Association (AOA)
These are legal documents defining the company’s objectives, operations, and rules.
MOA and AOA must include:
1. The main business activity.
2. Details of the nominee.
3. Capital structure and shares.
Step 5: File Incorporation Application (SPICe+ Form)
File the SPICe+ (INC32) form on the MCA website for company incorporation.
Attach:
1. MOA & AOA (INC33 & INC34)
2. Declaration & consent of director (INC9, DIR2)
3. Nominee consent form (INC3)
4. Proof of registered office
5. PAN, Aadhaar, and address proofs
Once approved, you will receive a Certificate of Incorporation and a Corporate Identification Number (CIN).
Time: 3–5 working days
Step 6: Apply for PAN & TAN
After incorporation, apply for the company’s PAN and TAN.
This can be done automatically through SPICe+ at the time of registration.
Step 7: Open a Company Bank Account
Use the Certificate of Incorporation, PAN, and MOA/AOA to open a current account in the company’s name.
Step 8: Apply for GST Registration (if applicable)
Mandatory if:
Annual turnover exceeds ₹20 lakh (₹40 lakh for goods), or
You sell interstate or via ecommerce.
Apply online at: https://www.gst.gov.in
7. Cost of OPC Registration
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1. Taxed as a Private Limited Company at a flat 25% (for domestic companies with turnover < ₹400 crore).
2. Additional surcharge and cess as applicable.
3. Must file Income Tax Return (ITR6) annually.
9. Annual Compliances for OPC
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Around 7–10 working days for full OPC registration if all documents are in order.
Quick Summary Checklist
- Summary Checklist.PNG (13.89 KiB) Viewed 67 times
1. Limited liability protection.
2. Full control of business.
3. Separate legal entity.
4. Easy conversion to Pvt Ltd.
5. Better access to loans and funding.
Disadvantages
1. Can have only one shareholder.
2. Cannot carry out nonbanking financial investment.
3. High compliance compared to a sole proprietorship.