One Person Company (OPC) Registration Online in India

A One Person Company (OPC) in India is a business entity that allows a single entrepreneur to operate a corporate entity with limited liability.

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Four Steps to Get Your Incorporation Certificate

Fill the Form

Provide business details

Add to cart

Pay the required fee online

Submit Documents

Upload required papers

Certificate delivery

Official Document Delivery

Find the best plan for your needs

Basic Plan

9,999
+GST

Standard Plan

13,499
+GST

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22,999
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Note: Government fees for incorporation are additional and vary by state. T&C

Overview of OPC

A One Person Company (OPC) in India is a unique form of business entity introduced by the Companies Act, 2013, allowing a single individual to own and operate a company with limited liability protection. This structure provides the benefits of a private limited company, such as legal status and limited liability, while requiring only one shareholder and one director, simplifying the management and compliance requirements.

OPCs are particularly advantageous for solo entrepreneurs and small business owners who want to enjoy corporate benefits without involving multiple shareholders. They can convert into a private limited company upon meeting specific conditions. However, an OPC cannot carry out non-banking financial investment activities or convert voluntarily into any other type of company before two years from the date of incorporation, unless it crosses certain turnover or paid-up capital thresholds.

opc
opc mobile
opc

A One Person Company (OPC) in India is a unique form of business entity introduced by the Companies Act, 2013, allowing a single individual to own and operate a company with limited liability protection. This structure provides the benefits of a private limited company, such as legal status and limited liability, while requiring only one shareholder and one director, simplifying the management and compliance requirements.

OPCs are particularly advantageous for solo entrepreneurs and small business owners who want to enjoy corporate benefits without involving multiple shareholders. They can convert into a private limited company upon meeting specific conditions. However, an OPC cannot carry out non-banking financial investment activities or convert voluntarily into any other type of company before two years from the date of incorporation, unless it crosses certain turnover or paid-up capital thresholds.

Types
Features

Types of Various Entites

Helping entrepreneurs and business owners decide the most suitable legal structure for their operations.

types of entities mobile
flow
FEATURESCOMPANYOPCLLPPARTNERSHIP FIRMSOLE PROPRIETORSHIP
Legal Structure & Regulatory AuthorityLegal Structure & Regulatory AuthorityGoverned by the Companies Act; a single-member entity.Regulated by the LLP Act, a hybrid form combining elements of a private limited company and a partnership firm.Governed by the Indian Partnership Act; not a separate legal entity.Not a separate legal entity; owned by an individual.
OwnershipOwned by shareholders.Owned by a single individual.Owned by partners.Owned by partners.Owned by a single individual.
Min & Max MembersPublic Company:
Minimum: 3 Directors & 3 Shareholders
Private/Sec-8 Company:
Minimum: 2 Directors & 2 Shareholders
Maximum: 15 Directors &200 shareholders
Minimum 1 member; can convert to a private company if paid-up capital exceeds a threshold.Minimum 2 partners; no maximum limit.Minimum 2 partners
Maximum 50 Partners.
Single owner.
Liability Of OwnersLimited liability for shareholders.Limited liability for the sole member.Limited liability for partners.Unlimited liability for partners.Unlimited liability for the owner.
Formation Process & TimeFormal process involving MOA, AOA; time-consuming.Simplified formation similar to a private company; less time-consuming.Requires LLP Agreement; less formal than a company; moderate time.Informal, created through a partnership deed; relatively quick.Informal, created through a partnership deed; relatively quick.
DocumentationMOA, AOA, and various statutory documents.MOA, AOA, and various statutory documents.LLP Agreement, other required documents.Partnership deed.Minimal documentation.
Registration Cost & ComplianceHigher registration costs; extensive complianceModerate registration costs; similar compliance to a private company.Lower registration costs; lesser compliance than a company.Relatively lower registration costs; moderate compliance.Minimal registration costs; minimal compliance.
Common Seal UsageRequired and commonly used for official documents.Optional, not mandatory.Not required, often not used.Not applicable, as partnership firms do not have a common seal.Not applicable, as partnership firms do not have a common seal.
Perpetual SuccessionHas perpetual succession.Perpetual succession maintained.Has perpetual succession.Does not have perpetual succession.Does not have perpetual succession.
Management & Decision MakingBoard of Directors and shareholders.Sole member manages the company.Partners or designated managers.Partners or designated managers.Sole proprietor makes decisions.
PANCompany has its own PAN NumberOPC has its own PAN NumberLLP has its own PAN NumberPartnership firm has its own PAN NumberUse sole proprietor PAN number, no separate PAN required.
Brand ImageGenerally viewed as more formal and stable.Carries a corporate image.Seen as a hybrid, combining features of companies and partnerships.Image varies; often associated with traditional businesses.Image may vary; often associated with small businesses.
Priority In TendersOften enjoys higher priority in tenders due to its established corporate structure and credibility.May have a moderate standing, with priority depending on the project and bidding conditions.Tends to have moderate priority, influenced by the LLP's reputation and track record.Priority varies, usually based on the partners' credentials and the firm's past performance.Generally has lower priority, as tenders may favor entities with a more formal organizational structure.
Ease Of LoanGenerally has easier access to loans due to its separate legal entity status and established credit history.May face challenges as it is a relatively new concept, and lenders may perceive higher risk.Loan accessibility is moderate, dependent on the LLP's financial standing and partners' creditworthiness.Access to loans can be limited, relying heavily on the partners' personal creditworthiness.Limited access to loans, typically tied to the proprietor's personal credit history.
Employee Stock Options (ESOPS)Commonly used for employee incentives.ESOPs are permitted.ESOPs are allowed but less common.Limited use of ESOPs.ESOPs are not applicable.
Foreign Direct Investment (FDI)Generally allows FDI under specified conditions.May be subject to FDI restrictions.Permits FDI in sectors allowed by the government.FDI regulations may apply.Limited FDI options.
Compliance RequirementsMore extensive compliance requirements.Similar compliance requirements as a private company.Lesser compliance requirements compared to a company.Relatively fewer compliance requirements.Minimal compliance requirements.
Statutory AuditsStatutory AuditsStatutory audit is required.Mandatory if the annual turnover exceeds a specified limit.Not mandatory; partners may opt for an audit.Statutory audit is not required unless prescribed by specific laws.
Income Tax RatesFor Domestic Companies:
Up to a turnover of INR 400 crore: 25% Over INR 400 crore: 30% (plus applicable surcharge and cess)
For Foreign Companies:
40%(plus applicable surcharge and cess)
Taxed at the same rates as companies.Taxed at a flat rate of 30% (plus applicable surcharge and cess)Taxed at a flat rate of 30% (plus applicable surcharge and cess)Taxed at individual income tax rates (applicable slab rates for individual taxpayers)
Transferability Of OwnershipShares can be transferred.Ownership transfer is restricted.Ownership transfer is possible with the consent of partners.Transfer of partnership interest requires consent.Ownership is not transferable.
Conversion ProcessCan convert to LLP or OPC, subject to approvals.Can convert to a private company.Can convert to a private company, and vice versa.Can convert to an LLP or company.Can be converted into a company or LLP.
Dissolution ProcessWinding up involves complex legal processes.Winding up can be initiated voluntarily or by the Tribunal.Winding up can be voluntary or through the National Company Law Tribunal (NCLT).Can be dissolved based on the partnership agreement.Can be closed easily without complex legal procedures.

Why opt for a OPC?

Unlocking Your Business Potential with One Person Company Formation

Limited Liability

Protects personal assets from business debts and liabilities, ensuring financial security.

Ease of Management

Single owner structure simplifies decision-making and management processes.

Separate Legal Entity

Distinct legal identity from the owner, offering credibility and continuity.

Less Compliance

Fewer regulatory requirements and compliance burdens compared to other company structures.

Tax Benefits

Access to various tax benefits and exemptions under Indian tax laws.

Perpetual Succession

Ensures continuity of the company even if the owner passes away or changes.

Minimum Requirements

As Per Company Act 2013, there are Minimum Requirements That Need to be met For OPC Incorporation in India.

Nominee Must be Appointed

Unique bussiness Name

At least one partner must be a resident of India

Registered office address

Documents for OPC Incorporation

To incorporate a One Person Company in India, the following documents are required

Identity & Address of Director

Registered Premises Documentation

Identity & Address of Directors

Scanned Copy of PAN & Aadhaar/Driving License/Passport/Voters ID

Copy of Recent Utility Bills (Not Older Than Two Months)

Scanned Copy of PAN & Aadhaar/Driving License/Passport/Voters ID

Copy of Recent Utility Bills or Bank Statement (Not Older Than 2 Months)

Digital Passport-Size Photo

Email ID & Phone Number

Registered Premises Documentation

Copy of Recent Utility Bills (Not Older Than Two Months)

Scanned Notarized Rental Agreement (English Version)

Scanned No-Objection Certificate from Property Owner

Scanned Copy of Sale/Property Deed in English (For Owned Property)

Copy of Recent Utility Bills or Bank Statement (Not Older Than 2 Months)

Scanned Notarized Rental Agreement (English Version)

Digital Passport-Size Photo

Scanned No-Objection Certificate from Property Owner

Email ID & Phone Number

Scanned Copy of Sale/Property Deed in English (For Owned Property)

Note: The registered office for your business can be a residential address; it does not need to be a commercial space.

OPC Incorporation Procedure

One Person Company Formation Made Easy

OPC Incorporation Procedure mobile
Reserving the Company Name is a critical step in the incorporation process

Process:

RUN Service (Reserve Unique Name): File an application in Form SPICe+ Part A for the reservation of the name. Options: You can propose a maximum of two names at a time. Guidelines: The name should be unique and not similar to any existing companies or trademarks. Reservation Validity: The name reserved for the company is valid for a period of 20 days starting from the date it receives approval.

Description: The Second step is to obtain a Digital Signature Certificate (DSC) for the proposed Directors of the company. DSC is necessary for electronically signing the e-forms of company incorporation.

Process: DSC can be obtained from government-recognized certifying agencies. The applicant needs to provide a self-attested copy of their identity and address proof.

Validity: DSCs are typically valid for one to three years and can be renewed.

Following the successful reservation of the company name and acquisition of DSCs, the actual incorporation process for a One Person Company (OPC) as per the Companies Act, 2013, begins. This procedure is detailed and requires careful attention to ensure compliance with all regulatory requirements.
Preparation or Drafting of Initial Documents

The foundation of a smooth incorporation process begins with the preparation of crucial documents:

DIR-2 (Consent to Act as Director): A formal declaration by individuals agreeing to serve as directors, outlining their consent and commitment to undertake the roles and responsibilities.

Specimen Signature Card: Used for the Registrar of Companies (RoC) to verify the signatures of the company’s proposed signatories.

Drafting Memorandum of Association (MoA) and Articles of Association (AoA)

Once the initial documents are in place, the focus shifts to drafting two of the most crucial documents for any company:

Memorandum of Association (MoA): This document outlines the scope of operations, objectives, and the framework within which the company operates. It defines the relationship between the company and the outside world.

Articles of Association (AoA): The AoA lays down the rules governing the internal management of the company, including the conduct of its business and the rights and responsibilities of its sole member. These documents must be meticulously drafted to align with the company’s objectives and comply with regulatory requirements.

Filling Out SPICe+ Part B

With the foundational documents and the MoA and AoA ready, the next step involves filling out the SPICe+ Part B form. This critical form gathers comprehensive information necessary for the company’s incorporation, including:

      • Company name
      • Registered office address
      • Capital structure
      • Director and subscriber details

Filling this form accurately is essential as it forms the basis of the company’s legal identity.

Completing AGILE-PRO Form

Parallel to the SPICe+ Part B submission, the incorporation process also involves completing the AGILE-PRO form. This form ensures that the company is registered for:

      • Goods and Services Tax Identification Number (GSTIN)
      • Employees’ State Insurance Corporation (ESIC)
      • Employees’ Provident Fund Organisation (EPFO)
      • Professional Tax (PT)
      • Opening of a bank account

This step ensures that the company complies with various statutory requirements from the outset.

INC-9 Auto-Generation

The final step in the documentation process before submission is:

INC-9: Automatically generated based on the details provided in SPICe+ Part B, this form is a declaration by the sole member and first director, confirming their consent and details as submitted in the incorporation application.

Upon the successful submission of the forms and verification by the RoC, the company is issued a Certificate of Incorporation.
Certificate of Incorporation:

This is a crucial document, serving as proof that the company has been legally constituted and includes the Company Identification Number (CIN) along with the PAN and TAN issued to the company.

Incorporation of a private limited company within 7-14 working days.

Incorporation of a private limited company within 7-14 working days.

Documents Received After Company Formation

Incorporation Certificate                                                               
Permanent Account Number (PAN) of the company         
Tax Deduction Account Number (TAN) of the Company 
Articles Of Association (AOA)                                                     
Memorandum Of Association (MOA)                                       
Direction Identification Number (DIN)                                     
Digital Signature Certificate (DSC)                                           
Company Master Data                                                                   

Post Incorporation Compliances

Compliances for a One Person Company in India as required by the Ministry of Corporate Affairs (MCA), the Companies Act 2013, and other applicable laws

How V Smart Auditor can help ?

Our expert team at V Smart Auditors is committed to making your One Person Company incorporation process as seamless as possible. Here’s what you can expect when you choose us as your partner:

  • Guidance on Eligibility and Requirements

    V Smart Auditor Private Limited provides expert advice on the eligibility criteria and necessary requirements for incorporating a One Person Company (OPC) in India, ensuring that clients are well-informed and prepared for the process.

  • Assistance with Documentation

    They assist in preparing and organizing all the required documents for OPC incorporation, such as Digital Signature Certificate (DSC), Director Identification Number (DIN), and the drafting of Memorandum of Association (MOA) and Articles of Association (AOA).

  • Name Reservation Process

    V Smart Auditor aids in the selection and reservation of a suitable and unique name for the OPC, handling the process of name approval through the RUN (Reserve Unique Name) service on the Ministry of Corporate Affairs (MCA) portal.

  • Filing and Submission of Forms

    They efficiently manage the filing and submission of all necessary forms, including SPICe+ forms and other relevant applications, ensuring compliance with legal requirements and procedural accuracy

  • Guidance on Legal and Regulatory Compliance

    Post incorporation, V Smart Auditor provides guidance on fulfilling legal and regulatory compliances specific to OPCs, such as annual filings, tax registrations, and other statutory obligations.

  • Ongoing Support and Consultation

    Beyond the incorporation process, they offer ongoing support and expert consultation for any operational, legal, or financial queries related to the functioning and management of the OPC, ensuring smooth business operations.

Frequently Asked Questions

What is a One Person Company (OPC)?

A One Person Company (OPC) is a type of company established under the Companies Act, 2013, that allows a single individual to own and manage a business.

Who can form an OPC?

Only a natural person who is an Indian citizen and resident in India can form an OPC.

What is the minimum and maximum number of members required for an OPC?

The minimum number of members required for an OPC is one, and the maximum is one as well.

Can an OPC be converted into a private or public company?

Yes, an OPC can be converted into a private or public company when it meets the eligibility criteria and necessary requirements.

What is the significance of the term 'One Person' in OPC?

The term 'One Person' signifies that the entire ownership and management of the company is vested in a single individual.

What are the compliance requirements for an OPC?

An OPC must adhere to various compliance requirements, such as annual filings, board meetings, and maintaining financial records.

Is there a requirement for a nominee in an OPC?

Yes, an OPC must nominate a person who will take over the company in case of the owner's death or incapacity.

Can an OPC have more than one director?

Yes, an OPC can have more than one director, but it must have at least one director who is an individual and resident in India.

Can an OPC issue shares to the public?

No, an OPC cannot issue shares to the public; it can only have one shareholder

What is the minimum capital requirement for an OPC?

There is no minimum capital requirement for an OPC; it can be registered with a nominal capital.

How is the liability of the owner in an OPC limited?

The liability of the owner is limited to the extent of their capital contribution, which means their personal assets are not at risk.

Can an OPC engage in multiple businesses?

No, an OPC can engage in only one business activity at a time.

Are there any restrictions on the transfer of shares in an OPC?

Yes, there are restrictions on the transfer of shares in an OPC. The consent of the nominee is required for the transfer.

Can an OPC be a not-for-profit company?

No, an OPC is intended for conducting for-profit business activities.

Can an OPC be a subsidiary of another company?

Yes, an OPC can be a subsidiary of another company.

What is the maximum turnover limit for an OPC?

An OPC's maximum turnover limit is prescribed by the government and may change over time.

What is the process for converting an OPC into a private or public company?

The conversion process involves passing a special resolution, obtaining consent from the members, and filing the necessary forms with the Registrar of Companies.

What is the difference between an OPC and a sole proprietorship?

In an OPC, the liability of the owner is limited, whereas in a sole proprietorship, the owner has unlimited liability.

Can an NRI form an OPC in India?

Yes, an NRI can form an OPC in India, subject to certain conditions.

Can an OPC raise funds from venture capitalists or angel investors?

Yes, an OPC can raise funds from venture capitalists and angel investors.