What is a One Person Company (OPC)?
A One Person Company (OPC) is a type of private limited company that can be formed with just one person as both the director and shareholder. It was introduced under the Companies Act, 2013, to encourage sole proprietors to enter into the formal business structure with limited liability protection.
Unlike a sole proprietorship, an OPC has a separate legal identity, perpetual existence, and is eligible for various tax and funding benefits provided by the government.
Key Features of OPC:
- Only 1 shareholder and 1 nominee required
- Minimum 1 director, can also be the shareholder
- Limited Liability Protection
- Separate Legal Entity
- Mandatory to convert into Pvt Ltd after turnover exceeds ₹2 Crores
- Not allowed to raise funds from public or issue shares publicly
OPC Registration Process with TConBiz
- Free Consultation & Eligibility Check
- DSC (Digital Signature Certificate) for Director
- DIN (Director Identification Number) Application
- Name Approval via RUN (Reserve Unique Name)
- Drafting MOA & AOA
- Filing SPICe+ Form with MCA
- Get Certificate of Incorporation
- PAN, TAN & Bank Account Opening
Why OPC Registration is Important
1. Limited Liability
The liability of the sole owner is limited to the capital invested in the company. Personal assets are protected in case of business debts or losses.
2. Legal Recognition
An OPC is a legally recognized company under the Companies Act and enjoys the same legal protection and recognition as a private limited company.
3. Separate Legal Entity
An OPC is distinct from its owner, which means the company can own property, incur debts, and enter contracts in its own name.
4. Lower Compliance
Compared to other company types, OPC has minimal compliance requirements, making it easier and cost-effective for solo entrepreneurs to manage.
Documents Required for OPC Registration:
Director/Shareholder/Nominee: PAN Card Aadhaar Card / Passport / Voter ID Passport-size Photo Bank Statement / Utility Bill (as address proof) Registered Office: Rent Agreement (if rented) Electricity Bill (not older than 2 months) NOC from property owner
