One Person Company (OPC): Benefits, Process, and Compliance Simplified

Starting a business as a solo entrepreneur in India? The One Person Company (OPC) structure is designed for you! Introduced under the Companies Act 2013, an OPC combines the benefits of a corporate entity with the simplicity of a sole proprietorship.

This guide breaks down the advantages, registration process, and compliance requirements of an OPC, empowering you to launch your venture confidently.

What is a One Person Company (OPC)?

An OPC is a business entity that allows a single individual to own and manage a company while enjoying limited liability protection. Unlike sole proprietorships, an OPC is a separate legal entity, shielding the owner’s personal assets from business risks.

Key Features:

• Single shareholder/director.

• Requires a nominee director (to take over in case of incapacity).

• Ideal for freelancers, consultants, and small-scale businesses.

Top 5 Benefits of Choosing an OPC

1. Limited Liability Protection

   • Personal assets (home, savings) remain safe from business debts.

2. Sole Ownership with Corporate Status

   • Operate independently while enjoying credibility as a registered company.

3. Easy Access to Funding

   • Banks and investors prefer OPCs over sole proprietorships for loans/equity.

4. Tax Advantages

   • Taxed at corporate rates (25-30%) with potential deductions under Section 80-IAC for startups.

5. Minimal Compliance

   • No mandatory annual general meetings (AGMs) and simpler filings compared to Pvt Ltd companies.

OPC Registration Process: Step-by-Step

Step 1: Obtain Digital Signature Certificate (DSC)

• The director must apply for a Class 3 DSC (via agencies like NSDL, eMudhra).

Step 2: Apply for Director Identification Number (DIN)

• File Form DIR-3 with PAN, Aadhaar, and address proof.

Step 3: Reserve a Unique Name

• Submit 1-2 names via MCA’s RUN service (ensure compliance with naming guidelines).

Step 4: Prepare MOA & AOA

• Draft a Memorandum of Association (MOA) and Articles of Association (AOA) outlining business objectives and rules.

Step 5: File SPICe+ Form (INC-32)

• Submit incorporation documents, including:

  • MOA & AOA

  • Nominee director’s consent (Form INC-3)

  • Registered office proof (rent agreement + NOC)

• Pay fees based on authorized capital.

Step 6: Receive Certificate of Incorporation

• MCA issues COI with PAN, TAN, and Corporate Identity Number (CIN).

Timeline: 8-12 days (if documents are accurate).

OPC Compliance Requirements Simplified

Penalties: Late filings attract fines up to ₹1,000/day.

When Must an OPC Convert to a Private Limited Company?

• If paid-up capital exceeds ₹50 lakh OR average annual turnover crosses ₹2 crore for 3 consecutive years.

OPC vs. Sole Proprietorship: Quick Comparison

Why Choose Financial Munshi for OPC Registration?

Expert Guidance: End-to-end support for DSC, DIN, and SPICe+ filing.
Nominee Management: Assistance in selecting and documenting a nominee.
Post-Incorporation Support: GST registration, compliance, and tax filing.

Launch Your OPC in 10 Days! [Contact Us Today]