One-Person Company Registration

What is a One-Person Company?

An OPC (One-person Company) is a business structure that comes under the Companies Act, of 2013, that allows a single person to run a business, with a limited liability and a separate legal identity. As per section 2(62) of the Companies Act, an OPC can only have one shareholder and they must appoint a nominee director.

To incorporate a OPC it requires a minimum paid-up capital of ₹1 lakh and is exempt from AGMs. Different from other business structures like sole proprietorships, an OPC gets to enjoy a corporate status with relaxed compliance requirements.

In case, if your OPC turnover is above ₹2 crores or paid-up capital crosses ₹50 lahks, then you must convert your OPC into a private limited company within six months (Rule 6, Companies (Incorporation) Rules, 2014).

Overview

If you are an individual who wants the benefits of a private limited company while retaining full control over the business, then One-Person Company is the ideal business structure for your business. Introduced under the Companies Act, 2013, OPC provides you with limited liability, a separate legal identity and simplified compliance, making it a go-to option for startups, consultants and small business owners in India.

Why OPC? The Numbers Speak for Themselves

1. In India, over 80000+ OPCs have been registered since its introduction in 2013, showing how strongly this business structure got adopted among solo entrepreneurs.
2. Unlike sole proprietorships, OPCs protect your personal assets by limiting liability to the business’s investment.
3. Under the OPC business structure, 100% ownership of the business remains with you making the decision-making faster and more efficient.
4. Compliance is much more organised as there are no Annual General Meetings (AGMs) and fewer regulatory filings compared to Private Limited Companies.

With structured compliance and a growth-focused legal framework, OPCs help to bridge the gap between sole proprietorships and private limited companies, giving you a strong base for solo entrepreneurs to scale their ventures.

Regulatory Flexibility & Compliance Benefits

OPCs enjoy simplified compliance, fewer regulatory requirements and a simpler transition process as they grow.

1. No mandatory board meetings - Different from private limited companies, OPCs are exempt from holding frequent board meetings unless required.
2. Annual filings made simple - OPCs must file MGT-7A (Annual Return) and AOC-4 (Financial Statements) but have fewer compliance burdens compared to other corporate structures.
3. Easy conversion into a Private Limited Company - If an OPC crosses ₹2 crore in turnover or ₹50 lakh in paid-up capital, it must convert into a private limited company within six months.