One Person Company Registration
One Person Company (OPC) Registration allows a single entrepreneur to start a business with limited liability and a separate legal identity. It is an ideal structure for individuals who want to run a company with full control while enjoying the benefits of corporate status and legal protection.
Single Owner with Full Control of Business
Limited Liability Protection for the Owner
Separate Legal Entity Status
Easy Fundraising & Better Business Credibility
Less Compliance Compared to Private Limited Company
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One Person Company Registration
What is an One Person Company Registration?
One Person Company (OPC) Registration allows a single entrepreneur to establish and operate a corporate entity with limited liability protection. An OPC has only one shareholder and combines the advantages of a sole proprietorship with the benefits of a private limited company structure.
Benefits of One Person Company
- ✓Limited liability protection for the owner.
- ✓Separate legal identity from the proprietor.
- ✓Continuous existence irrespective of ownership changes.
- ✓Better borrowing capacity and business credibility.
Features of a One Person Company
Key features and membership rules of a One Person Company in India.
Private company
According to the companies' act, a single person is capable to form a company for any purpose abiding by the law. Hence it can be considered as a private company.
Single-member
Contradicting to the private companies, one person company can only have a single member/shareholder.
Nominee
While registering for the company as a one-person company, that sole member will have to mention a nominee.
Perpetual succession not required
Unlike the normal companies having a concept of perpetual succession, in one person company if the sole member dies, then the nominee will have to decide if they want to continue the company by being the sole member or to dissolve the company.
Minimum of one director required
One person company requires to assign at least one person as director which can be that member itself but they can have a maximum of up to 15 directors.
Minimum paid-up share capital not required
According to the companies' act, there shall be no minimum paid-up share capital for one person company.
Membership in One Person Companies
Important eligibility and membership conditions.
A person who is a citizen and a resident of India is the only one eligible to form a one-person company. The nominees selected should also restrict the same restriction. Also, the nominee selected cannot be a nominee for more than one One Person Company at the same point in time. Unlike other companies, the shareholder and the member should be a living person. Minors are strictly prohibited from becoming a member of a One Person Company according to law.
Benefits of Pvt. Ltd. Company Registration in India
Key advantages of registering a Private Limited Company in India.
Easy fundraising
Pvt. Limited company registration process is rigorous enough to make this structure reliable among others which make it easy to raise or borrow money from external sources. The organization itself offers several ways to raise funds in the form of private equity, ESOPs, and more.Separate legal entity
Once a Pvt. Ltd. company registration is done in India, a legal entity is born in the eyes of the law. It is different from its owners and managers. it is required for a company to open a bank account of its own name to operate the contract and assets with parties of the company. It also provides the right to sue third parties in case of any default.Owners’ limited liability
It does not impose any charge by the debt or liability of the company on the owner’s personal property. The liability of the private limited company holder is limited, that is only to the capital and unpaid fixed by them.Management and Ownership Separation
Separate ownership and management both help the company and management to focus on their potential tasks. The shareholders give the company responsibility to operate and run without losing control in the form of voting.Documents required providing for a Private Limited Company Registration
Submit the following documents and details for smooth private limited company registration.
Steps Required for Registering a One Person Company
Follow these simple steps to complete your One Person Company registration smoothly and obtain all required approvals from MCA.
Application of Digital Signature Certificate & DIN
The first step to get registered under One Person Company is the promoter or director has to apply for Digital Signature and DIN (Director Identification Number).
Name Approval
Provide three unique company names to MCA. The approved name should be descriptive and unique.
Submission of MOA & AOA
After name approval, MOA and AOA documents are prepared and submitted for incorporation.
Affidavit of Subscriber and Director
The sole member of the company must submit the required affidavit for registration.
Nomination by Single Member
A nominee must be appointed to take over the company in case of death or incapacity of the member.
MCA E-Forms Filing
Upload AGILE and INC-22 forms to obtain the Certificate of Incorporation.
Get COI with PAN & TAN
Receive the Certificate of Incorporation along with PAN and TAN after successful registration.
Conversion of OPC
An OPC cannot voluntarily convert into another company type before the prescribed period under the Companies Act.
Minimum Requirements for Company Registration
The essential requirements needed to start the registration process smoothly.
One Shareholder
One Director
One Nominee
One Person
One Shareholder
One Director
One Nominee
One Person
Requirement 1
One Shareholder
Requirement 2
One Director
Requirement 3
One Nominee
Requirement 4
One Person
Process of One Person Company Registration
Follow these simple steps to complete your OPC registration smoothly and efficiently.
Fill basic details for company
Digital signature certificate and DIN
Verification of Email documents
Get your certificate
From document submission to certificate issuance, our team helps you at every stage of the registration process.
Frequently Asked Questions
Everything you need to know about One Person Company Registration
Incorporation through SPICe (Without filling RUN) Stakeholders by applying for Incorporation of a new company through SPICe (Simplified Proforma for Incorporating Company electronically) form (INC-32) with eMoA (INC-33), eAOA (INC-34), can avail of 5 different services in one form Name Reservation, Allotment of Director Identification number (DIN), Incorporation of New Company, Allotment of PAN and Allotment of TAN In case eMoA, eAoA are not applicable, users are required to attach the pdf attachments of MoA and AoA. There is no need for reserving a name separately before filing SPICe. One name for the proposed company can be applied through SPICe (INC-32). Incorporation through SPICe (With RUN) Name reservation: RUN service shall be used for name availability Incorporate OPC: After name approval, form SPICe shall be filed for incorporation of the OPC within 20 days from the date of approval of RUN. The company shall file form INC-22 within 30 days once form SPICe is registered in case the address of correspondence and registered office address are not same.
The company shall file form INC-4 in case of cessation of member of OPC on account of death, incapacity to contract or change in ownership. In the same form, user needs to provide details of the new member of the OPC.
In case the paid up share capital of an OPC exceeds 50 lakh rupees or its average annual turnover of immediately preceding three consecutive financial years exceeds two crore rupees, then the OPC has to mandatorily convert itself into private or public company.
Using Form INC-5 RoC can be informed, if the threshold limits is exceeded and OPC is required to be converted into private or public company.
Form INC-5 shall be filed within sixty days of exceeding threshold limits.
A private company can also fill form INC-6 for converting itself into an OPC. But the following conditions must be satisfied for conversion The paid up share capital of private company should not be exceeding fifty lakh rupees and should not have average annual turnover more than two crore rupees at the time of conversion. The company shall be having one member It shall appoint one nominee to act as member in case of death or incapacity of the member at the time of conversion into OPC.
Form INC-6 shall be filed within 30 days for voluntary conversion and within six months for mandatory conversion.
Only a natural person shall be eligible to act as a member and nominee who is An Indian citizen and Resident in India (stayed in India for a period of not less than 182 days during the immediately preceding one financial year).
A person can be member in only one OPC.
The member must withdraw from either of the OPC within a period of 182 days.
Form INC-4 shall be filed for withdrawal of consent by the nominee or for intimation of change in nominee by the member.
Yes, Foreign National or NRI can become a director or shareholder in a private limited company in India. But holding of shares in the company by foreign nationals/companies will be as per FDI Guidelines of India. And atleast one member of the Board of Directors of the company must be a Indian Resident.