OPC REGISTRATION (ONE PERSON COMPANY)

1. Introduction

A One Person Company (OPC) is a type of company that can be formed by a single individual as the sole shareholder and director. Introduced under the Companies Act, 2013, OPC is ideal for small businesses and individual entrepreneurs who want the benefits of a Private Limited Company, such as limited liability and a separate legal entity.

2. Key Features of OPC

• Can be formed by only 1 person
• Separate legal entity
• Limited liability protection
• Single owner controls the entire business
• Compliance is moderate
• Suitable for small-scale businesses

3. Who Can Start an OPC?

• Any Indian citizen
• Resident in India (min. 120 days/year)
• Cannot incorporate more than one OPC
• Cannot be nominee in more than one OPC

4. Benefits of OPC Registration

• Limited Liability
• Separate Legal Entity
• Easy fundraising option
• Better credibility
• Complete control with owner
• Perpetual succession

5. Documents Required

A. For Director:

• PAN Card
• Aadhaar Card
• Address Proof
• Photograph
• Email & Mobile Number

B. Office Proof:

• Utility Bill
• Rent Agreement (if rented)
• NOC from property owner

6. Registration Procedure

1. Obtain Digital Signature Certificate (DSC)
2. Apply DIN
3. Name Approval via SPICe+ Part A
4. File SPICe+ Part B (Incorporation)
5. Nominee Appointment (Form INC-3)
6. Certificate of Incorporation
7. PAN & TAN
8. Bank Account Opening

7. Compliance Requirements

• MGT-7A Annual Return
• AOC-4 Financial Statement
• ITR-6 filing
• GST (if applicable)

8. Taxation of OPC

• Corporate Tax: 22% or 25%
• MAT may apply
• Dividend taxed in shareholder’s hands

9. OPC vs Proprietorship vs Private Limited

• OPC: Separate entity, limited liability, moderate compliance
• Proprietorship: No separate entity, unlimited liability, low compliance
• Private Limited: Separate entity, high compliance, high credibility

10. Restrictions

• Cannot do NBFC activities
• Cannot convert voluntarily before 2 years
• Minor cannot be a nominee

11. When to Choose OPC

• Solo entrepreneurs
• Freelancers
• Early-stage startups
• Service providers

12. Conclusion

OPC is ideal for individuals seeking limited liability, corporate status, and full ownership control. It can be converted into a Private Limited Company as the business grows.