OPC Registration

The right structure for solo entrepreneurs looking beyond the opportunities a sole proprietorship affords.

  • One DSC & DIN

    The director must be registered with the MCA

  • Name Reservation

    We will then help you pick a unique name

  • MoA & AoA

    We will draft your company's constitution

  • SPICe i.e. INC-32 Approval

    Your company is now incorporated

  • Company PAN & TAN

    We will send in a request to the NSDL

What is One Person Company (OPC) Registration?

The One Person Company (OPC) was recently introduced as a strong improvement over the sole proprietorship. It gives a single promoter full control over the company while limiting his/her liability to contributions to the business. This person will be the only director and shareholder (there is a nominee director, but with no power until the original director is incapable of entering into contract). So there's no chance of raising equity funding or offering employee stock options. Furthermore, if an OPC hits an average three-year turnover of over Rs. 2 crore or has a paid-up capital of over Rs. 50 lakh, it must be turned into a private limited company or public limited company within six months.

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Documents Required for OPC Registration

To be submitted by Director

  • Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
  • Scanned copy of Voter's ID/Passport/Driver's License
  • Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
  • Scanned passport-sized photograph
  • Specimen signature (blank document with signature)
    • Note: The director must self-attest the first three documents. In case of foreign nationals and NRIs, all the documents must be notarised (if currently in India or a non-Commonwealth country) or apostilled (if in a Commonwealth country).

    For the Registered Office

  • Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
  • Scanned copy of Notarised Rental Agreement in English
  • Scanned copy of No-objection Certificate from property owner
  • Scanned copy of Sale Deed/Property Deed in English (in case of owned property)
    • Note: Your registered office need not be a commercial space; it can be your residence, too.

Advantages of OPC Registration

Limited Liability

The directors' personal property is always safe in a private limited company, no matter the debts of the business.

Continuous Existence

Sole Proprietorships come to an end with the death of the proprietor. As an OPC has a separate legal identity, it would pass on to the nominee director and, therefore, continue to exist.

Greater Credibility

As an OPC needs to have its books audited annually, it has greater credibility among vendors and lending institutions.

FAQs on OPC Registration

An OPC is a good alternative to running a sole proprietorship, largely because it gives limited liability to the business owner. This means that your liability is limited to the amount you’ve invested in the business; business debts cannot be recovered from personal possessions. Also, a sole proprietorship ceases to exist on the death of its promoter. In the case of an OPC, the nominee director takes over and the entity continues to exist. Single entrepreneurs who do not have another partner to start a private limited company may also consider it.
Only Indian residents can register an OPCs, and that, too, only one at a time, as per the specifications of the Ministry of Corporate Affairs.
All such businesses must maintain books of accounts, comply with statutory audit requirements and submit income tax returns and annual filings with the RoC.
There is no difference in capital requirement between an OPC and a private limited company. It needs an authorised capital of Rs. 1 lakh to begin with, but none of this actually needs to be paid-up. This means that you don’t really need to invest any money into the business.
No general advantages; though some industry-specific advantages are available. Tax is to be paid at flat rate of 30% on profits, Dividend Distribution Tax applies, as does Minimum Alternate Tax.
The MCA is skeptical about a single person in charge of a large corporation. Therefore, it requires all OPCs to be converted into private limited or public limited companies on crossing a certain revenue number. Currently, in case of an average turnover of Rs. 2 crore or more for the three consecutive years or a paid-up capital of over Rs. 50 lakh, the OPC must mandatorily be converted into an OPC.
The cost of an OPC is only marginally lower than that of a private limited company. You’ll be shelling out around Rs. 12,000 to incorporate, then paying around Rs. 15,000 a year in compliance fees and an auditor to inspect your books.
An OPC has certain limitations. The person starting the business is its only director and shareholder. There is also a nominee director, but this person has no power whatsoever for raising equity funds or offer employee stock options. The nominee exists only to take over in case of the death or incapacitation of the director. The nominee is chosen by the director, and can be anyone, such as your spouse, parents or siblings. The nominee will need to provide identity proof during registration.
No, an individual can form only one OPC at a time. This rule applies to the nominee in an OPC, too.

OPC Registration Process

5 Working Days

The director must apply for the Digital Signature Certificate (DSC), which is necessary to file the company registration documents. For this, you will only need to provide a few scanned documents and details; our representatives will fill the form and submit it online.

7 Working Days

As soon as we apply for the DSC, we will ask you to pick a name for your company, and send us some scanned documents regarding it. These will be used to file SPICe i.e. INC-32 and the Memorandum of Association (MoA) and Articles of Association (AoA). The Certificate of Incorporation will be approved at the end of this process.

2 Working Days

Every company needs a registered Permanent Account Number (PAN) and Tax Account Number (TAN). We will make the application online ourselves, but you will need to courier hard copies of the required documents yourself. The PAN and TAN will be couriered to the your registered office address in 21 working days.

Compare Your Options

One Person Company Limited Liability Partnership Private Limited Company Partnership Firm Sole Proprietorship
Recommended For
 Solo promoters Professional services firms Start-ups and growing companies Home businesses Small manufacturers & traders
Ease of Accommodating Investment
 Possible, but severely unlikely Possible, but unlikely Very easy to accommodate Almost impossible Impossible
Limited Liability Protection
 Yes Yes Yes No No
Tax Advantages
 Few benefits Most efficient Few benefits Minimal Minimal
Perpetual Existence
 Yes Yes Yes No No
Statutory Compliances
 High Low High Minimal Minimal
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Why Vakilsearch

15 Working Days

Just tell us a little bit about your business and you'll have the incorporation certificate in 15 working days. It's that simple. In addition to yours, we'll be handling around 400 requests this month.

9.1 Customer Score

We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

160 Strong Team

Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.