One Person Company (OPC) Registration in India – Complete Guide
One Person Company (OPC) Registration in India – Complete Guide
A One Person Company (OPC) is a business structure that allows a single entrepreneur to operate a private limited company with limited liability protection. It is best suited for small businesses, freelancers, consultants, and startups looking for a corporate identity without requiring multiple directors.
📌 Benefits of OPC Registration
✔ Limited Liability – Protects the owner’s personal assets.
✔ Separate Legal Entity – OPC is distinct from its owner.
✔ Single Owner & Control – Ideal for solo entrepreneurs.
✔ Perpetual Existence – Company continues even after the owner’s death (with a nominee).
✔ Better Funding Opportunities – OPC can raise capital through venture funding & banks.
✔ Less Compliance than Private Limited Companies – No need for board meetings or extensive filings.
1️⃣ Eligibility Criteria for OPC Registration
✔ Only One Shareholder – Must be an Indian citizen & resident (stayed in India for at least 182 days in the previous financial year).
✔ Nominee Mandatory – A nominee must be appointed in case the sole owner becomes incapacitated.
✔ No Minimum Capital Requirement – But advisable to start with ₹1 lakh or more.
✔ Cannot be a Non-Banking Financial Company (NBFC) – OPC cannot engage in financial investment activities.
2️⃣ Step-by-Step Process for OPC Registration
Step 1: Obtain Digital Signature Certificate (DSC)
🔹 Required for the sole director & nominee.
🔹 Issued by eMudhra, NSDL, or Sify.
Step 2: Apply for Director Identification Number (DIN)
🔹 File SPICe+ Form on the MCA portal.
Step 3: Name Reservation (RUN Application)
🔹 Choose a unique name for the OPC (Example: XYZ OPC Private Limited).
Step 4: File for Incorporation (SPICe+ Form)
🔹 Attach necessary documents (PAN, Aadhaar, Address Proof).
Step 5: Draft & File Memorandum of Association (MoA) & Articles of Association (AoA)
🔹 These define the company’s objectives & rules.
Step 6: PAN, TAN & Bank Account Opening
🔹 Automatically generated with registration.
🔹 Open a bank account in the company’s name.
Step 7: GST Registration (If Required)
🔹 Mandatory if turnover exceeds ₹40 lakh for goods or ₹20 lakh for services.
3️⃣ Cost of OPC Registration (Breakdown)
| Expense | Approximate Cost (₹) |
|---|---|
| Digital Signature Certificate (DSC) | ₹1,000 – ₹2,000 |
| Director Identification Number (DIN) | ₹500 – ₹1,000 |
| Name Approval (RUN) | ₹1,000 |
| SPICe+ Form Filing | ₹2,500 – ₹5,000 |
| MoA & AoA Drafting | ₹2,000 – ₹4,000 |
| Professional Fees (CA/CS) | ₹5,000 – ₹15,000 |
| Government Fees (MCA) | ₹2,000 – ₹7,000 |
💡 Total Cost: ₹12,000 – ₹30,000 (varies based on professional services & state).
4️⃣ Time Duration for OPC Registration (Step-Wise Breakdown)
| Process | Estimated Time |
|---|---|
| DSC & DIN Application | 1-2 days |
| Name Reservation | 1-2 days |
| SPICe+ Form Filing & Incorporation | 3-5 days |
| MoA & AoA Drafting | 2-3 days |
| PAN, TAN & Bank Account Setup | 2-4 days |
💡 Total Duration: 7-15 days (subject to MCA processing time).
5️⃣ Compliance & Returns for OPC
✔ Annual Compliance Requirements:
| Compliance | Filing Form | Due Date |
|---|---|---|
| Income Tax Return | ITR-6 | July 31 |
| Financial Statements | AOC-4 | October 27 |
| Annual Return | MGT-7A | April 30 |
| GST Returns (if applicable) | GSTR-1, GSTR-3B | Monthly/Quarterly |
✔ Additional Compliance:
🔹 Board Meetings – Not required, but at least one board resolution per year must be recorded.
🔹 Audit Requirement – If turnover exceeds ₹2 crore or capital exceeds ₹50 lakh.
6️⃣ FAQs on OPC Registration
❓ Who can start an OPC?
🔹 Any Indian resident (individual) can start an OPC.
❓ Can an OPC be converted into a Private Limited Company?
🔹 Yes, after 2 years or if turnover exceeds ₹2 crore.
❓ Can a foreigner or NRI start an OPC?
🔹 No, only Indian residents can register an OPC.
❓ Is GST registration mandatory for OPC?
🔹 Only if turnover exceeds ₹40 lakh (₹20 lakh for services).
❓ What happens if the OPC owner dies?
🔹 The nominee takes over the business automatically.
🔥 Conclusion
OPC is an ideal business structure for solo entrepreneurs who want limited liability and a corporate identity without a complex compliance structure.
💡 Need help registering an OPC? Let me know! 😊
