Empower solo entrepreneurs with limited liability and corporate benefits. We simplify registration for full control and minimal compliance.
A One Person Company (OPC) is an ideal business structure for solo entrepreneurs in India who wish to enjoy the benefits of a registered company while retaining complete control over their business. It combines the simplicity of a sole proprietorship with the limited liability protection of a private limited company, safeguarding the owner’s personal assets from business liabilities.
The OPC format is particularly suitable for small businesses and startups, providing a legally recognized entity with minimal compliance obligations compared to other company types. Registering a One Person Company in India is a simple process governed by the Companies Act, 2013. The process begins by selecting a unique business name and obtaining approval through the Ministry of Corporate Affairs (MCA) using the SPICe+ form.
Applicants must then prepare and file the Memorandum of Association (MoA) and Articles of Association (AoA), which outline the company’s objectives, structure, and internal operations. Supporting documents such as proof of registered office address and identity documents of the promoter must also be submitted.
Once these documents are verified and approved by the Registrar of Companies (RoC), a Certificate of Incorporation is issued, officially recognizing the OPC as a registered legal entity. An OPC enjoys simplified compliance compared to private or public limited companies, reducing administrative and regulatory obligations.
This business model is ideal for individuals who wish to maintain full decision-making authority while enjoying the benefits of limited liability, formal recognition, and legal protection. At LegalNurture, we provide end-to-end assistance for OPC registration, guiding you through each step to ensure a smooth, compliant, and efficient setup so you can focus on growing your business with confidence.
According to Section 2(62) of the Companies Act, 2013, a One Person Company (OPC) is defined as a company that has only one person as its member. The term "member" refers to the individual listed in the Memorandum of Association (MoA) of the company. In essence, an OPC is a company that has a single shareholder who owns 100% of the business.
An OPC is incorporated by a single individual who acts as both the shareholder and the director.
The member’s liability is limited to the extent of their shareholding, ensuring personal assets are safeguarded.
The OPC continues to exist even after the owner’s death or incapacity through a nominee appointed at the time of incorporation.
An OPC is a distinct legal entity capable of owning property, entering contracts, and initiating or facing legal proceedings in its own name.
OPCs are subject to fewer compliance requirements compared to private or public limited companies, making them easier to manage.
OPCs are required to submit fewer documents and have simplified annual filing obligations with the Registrar of Companies (RoC).
OPCs are not required to conduct AGMs, reducing administrative burden.
Financial institutions and banks are more likely to extend credit to OPCs due to their formal corporate structure and limited liability status.
The ideal structure for solo entrepreneurs who want corporate benefits with minimal compliance
Only a natural person who is an Indian citizen and resident can incorporate an OPC.
The sole shareholder must nominate another individual who will assume control if the shareholder dies or becomes incapacitated.
A minor cannot incorporate or be a nominee in an OPC.
The minimum authorised capital must be ₹1 lakh. However, there is no minimum paid-up capital requirement.
The sole member may also act as the sole director of the company.
The director must comply with the statutory duties and obligations laid down under the Companies Act, 2013.
| Particular | Compliance Requirement | Form | Due Date |
|---|---|---|---|
| Annual Return | Filing of the company’s annual return with the Registrar of Companies (RoC). | Form MGT-7 | Within 60 days from the date of the AGM |
| Financial Statements | Submission of financial statements including Balance Sheet and Profit & Loss Account. | Form AOC-4 | Within 180 days from the end of the financial year |
| Income Tax Return | Filing of the company’s annual income tax return with the Income Tax Department. | — | 30 September of the assessment year |
A One Person Company (OPC) in India is subject to various tax obligations similar to other corporate entities, while also enjoying certain tax benefits and deductions under the Income Tax Act, 1961.
OPCs are required to pay corporate income tax on their total earnings. The applicable tax rates for OPCs are the same as those for private limited companies.
OPCs can claim deductions on various business expenditures, including depreciation on business assets, employee salaries, rent, utilities, and administrative expenses, and other permissible allowances under the Income Tax Act.
OPCs must pay Dividend Distribution Tax (DDT) on any dividends declared and distributed to their shareholder.
If an OPC’s annual turnover exceeds ₹20 lakhs, it is mandatory to register under GST and file periodic GST returns in compliance with the Goods and Services Tax Act.
OPCs opting not to claim any exemptions or incentives are taxed at a flat rate of 22%, plus applicable surcharge and cess. OPCs claiming exemptions or incentives are taxed at a rate of 30%, plus surcharge and cess.
All OPCs are subject to Minimum Alternate Tax (MAT), charged at 15% of book profits, in addition to applicable surcharge and cess.
An OPC must undergo a tax audit under the Income Tax Act if its annual turnover exceeds ₹1 crore (for businesses), or gross receipts exceed ₹50 lakhs (for professionals).
At LegalNurture, we offer end-to-end assistance for One Person Company (OPC) registration, ensuring a seamless, efficient, and compliant experience for entrepreneurs. Our team manages every step of the process with precision and professionalism so you can focus on building your business.
We provide personalized legal consultation to help you understand the requirements, benefits, and suitability of registering your business as a One Person Company.
Our experts assist in preparing and organizing all required documents, ensuring that each submission meets the statutory standards set by the Ministry of Corporate Affairs (MCA).
LegalNurture helps you obtain your Director Identification Number (DIN) and Digital Signature Certificate (DSC), both of which are mandatory for incorporation.
We handle the entire process of name reservation and approval with the MCA, ensuring that your chosen name is unique and fully compliant with legal requirements.
Our team drafts the Memorandum of Association (MoA) and Articles of Association (AoA) tailored to your business model, outlining your objectives and internal governance structure.
LegalNurture manages the filing of incorporation forms (INC-32, INC-33, and INC-34) with the Registrar of Companies, ensuring accuracy and adherence to all legal protocols.
We facilitate the issuance of your Certificate of Incorporation, which officially recognizes your OPC as a registered entity under Indian law.
Our team assists in obtaining your Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for taxation and compliance purposes.
LegalNurture provides comprehensive post-incorporation assistance, including guidance on annual filings, statutory compliances, and ongoing legal requirements, ensuring your OPC remains compliant and operationally efficient.