One Person Company (OPC) Registration in India

One Person Company (OPC) is an innovative business structure introduced under Section 2(62) of the Companies Act, 2013 to encourage individual entrepreneurs to start their businesses with the benefits of a corporate framework.

In an OPC, a single person acts as both the shareholder and the director, making it ideal for solo founders who want limited liability protection and a separate legal identity without the complexities of having multiple partners.

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Meaning of One Person Company

As per the Companies Act, 2013, an OPC is a company with only one member who is also the sole shareholder. The concept bridges the gap between a sole proprietorship and a private limited company, giving business owners the flexibility of sole control while enjoying corporate benefits.

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Why Choose One Person Company?

• Full control of the business by a single individual
• Limited liability protection
• No requirement for minimum paid-up share capital
• Recognition as a separate legal entity
• Easier compliance compared to private/public companies
• Perpetual succession

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Advantages of One Person Company Registration

• Limited Liability – The personal assets of the owner remain safe; liability is restricted to the capital invested.
• Separate Legal Identity – The company has its own legal status, separate from the owner.
• Tax Benefits – Directors’ remuneration, rent, and interest can be claimed as deductions to reduce taxable income.
• Quick Decision Making – Single ownership allows faster decisions without internal conflicts.
• Ease of Management – No need for board meetings or complex resolutions unless required by law.

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Minimum Requirements for OPC Registration

• One shareholder (individual)
• One nominee (individual)
• At least one director (can be the shareholder)
• Director and nominee must be Indian citizens and residents of India (stay of 182 days or more in the previous year)
• No person can incorporate more than one OPC or act as nominee in more than one OPC

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Key Conditions for Incorporation

• Minimum Authorized Capital: ₹1 lakh
• Conversion mandatory to a Private Limited Company if:
  • Paid-up capital exceeds ₹50 lakh, OR
  • Average annual turnover of 3 consecutive years exceeds ₹2 crore
• Cannot be incorporated as or converted into a Section 8 Company (non-profit)
• Cannot engage in non-banking financial investment activities

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Documents Required

For Director & Nominee:

• PAN card (self-attested)
• Identity proof (Aadhar card/Passport/Voter ID/Driving License)
• Address proof (Bank statement/Electricity bill/Telephone bill – not older than 2 months)
• Passport-size photographs

For Registered Office:

• Proof of address (Utility bill not older than 2 months)
• NOC from property owner
• Ownership proof (Sale deed/Property tax receipt)

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Registration Process of One Person Company

The Ministry of Corporate Affairs (MCA) has simplified OPC registration through its SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) online form.

Step-by-Step Process

1. Obtain Digital Signature Certificate (DSC) for the proposed director.
2. Reserve Company Name through Part A of SPICe+ after checking MCA and trademark availability.
3. File SPICe+ Part B with required details and attach:
   • DIR-2 (Consent to act as Director)
   • INC-3 (Nominee Consent)
   • Identity and address proofs
   • MOA & AOA in electronic format
4. File AGILE-PRO form for:
   • GST Registration (optional)
   • EPFO & ESIC Registration (mandatory)
   • Bank account opening
5. Affix DSC & Upload Forms on the MCA portal.
6. Receive Certificate of Incorporation with PAN & TAN.

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Benefits After Registration

• Legal recognition and corporate credibility
• Easier to raise funds from banks and investors
• Better protection of personal assets
• Tax-efficient structure

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