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“Going Solo in Business? A One Person Company Could Be Your Best Move.”
Every business starts somewhere. For some, it’s a garage. For others, it’s a spare room, a laptop, and one determined individual. If you’re someone who has been running your show solo and wants to elevate things legally, then a One Person Company (OPC) might just be the right step forward.
It is suitable for individuals who don’t yet have a co-founder or partner. It’s an ideal choice for solo entrepreneurs, freelancers, or consultants who want to move beyond the informal setup of a sole proprietorship.
What is a One Person Company (OPC)?
A One-Person Company (OPC) is a private limited company for solo entrepreneurs. It lets a single individual own and manage the entire business—no partners, no shared ownership—while enjoying the perks of a structured legal entity. Introduced under the Companies Act, 2013, OPCs were created to give individual business owners the legal identity, credibility, and limited liability protection typically reserved for larger setups. Whether you’re providing services, selling products, or launching a startup, registering as an OPC gives your business the formal structure it needs, without adding unnecessary complexity.
Benefits of a One Person Company in India
OPCs offer a smart upgrade for solo entrepreneurs who want more than an informal setup. Rather than operating as a sole proprietorship, registering as a One-Person Company gives your business a formal identity, legal backing, and the freedom to scale with confidence.
Here’s what makes OPCs a powerful choice:
Limited Liability
If something goes wrong in the business, your personal savings and assets won’t take the hit. That’s the biggest plus of OPC—it creates a safety buffer between you and your business risks.
Full Control, No Compromise
You’re the sole director and shareholder, so you can make decisions and steer the ship without waiting on partners or dealing with conflicts.
Separate Legal Identity
The OPC operates independently—it can sign contracts, lease office space, and even face legal action, all separate from you, adding credibility and freedom.
More Trust from Banks and Clients
An OPC holds more weight than an unregistered business. As the structure adds legitimacy, banks are more likely to lend, and larger clients are more inclined to partner.
Ready to Scale When You Are
Start small, stay solo, and grow at your own pace. If needed, you can easily convert your OPC into a private limited company and expand. No rush, just room to grow.
Eligibilities to Register an OPC in India
Setting up a One Person Company is simple, if you meet a few key criteria.
The government has outlined basic guidelines to ensure the OPC structure is used effectively, making the process streamlined for eligible entrepreneurs.
Here’s what you’ll need:
- Indian Residency: You must be an Indian citizen and resident, meaning you’ve spent at least 120 days in India during the financial year.
- One Person, One Role: As the name suggests, only one person can act as both shareholder and director.
- Nominee Required: You’ll need to appoint a nominee—someone who can take over if you’re unable to run the company. Their written consent is mandatory.
- Restricted Sectors: OPCs can’t operate in areas like finance, investment, or NBFC-related businesses.
- No Growth Limits: The earlier restrictions on paid-up capital and turnover are gone—scale your OPC without worrying about ceilings.
Registration Process of OPC
Registering your OPC may seem complex, but it’s methodical. With the right documents and guidance from someone experienced, it’s mostly a matter of following the steps.
- Get a Digital Signature (DSC): Since everything is filed online, this digital key is your first step.
- Choose a Company Name: You apply through the MCA portal (SPICe+ Part A), and your name must include “(OPC) Private Limited.”
- Fill the Forms: You’ll upload details of your company, nominee, address, and capital using SPICe+ Part B and other connected forms.
- PAN and TAN Included:The new system gives you tax IDs as part of the same process—no extra hassle.
- Incorporation Certificate: Once everything’s in order, the RoC approves your application and issues the Certificate of Incorporation.
From start to finish, the process usually takes about a week or so—maybe a bit more if documents need review. But overall, it’s clean, online, and straightforward.
Documents Required for OPC Registration?
The document checklist for an OPC is short, but getting it right is key.
If you’ve got your ID proofs and a valid address handy, you’re already well on your way. Prepare and verify the documents below in advance to ensure a smooth, hassle-free registration with no last-minute delays.
For You (the Director & Shareholder):
- PAN card and Aadhaar (or passport/driver’s license/voter ID)
- Latest utility bill or bank statement as address proof
- Passport-sized photo
- Signature on white paper
- Consent from your nominee (Form INC-3)
For the Company’s Registered Office:
- Rent agreement (if applicable)
- NOC from the property owner
- Recent utility bill as address proof
Company Documents:
- Draft Memorandum of Association (MoA) and Articles of Association (AoA)
- Declarations and affidavits as per MCA norms
Compliance Requirements for OPC
Once you’ve incorporated your OPC, you’re officially a business owner now! Running a company in India comes with some important ongoing compliance rules, and keeping track of them will help you avoid any potential penalties.
Here’s your post-incorporation checklist:
- Maintain Books of Accounts: Record all income, expenses, and transactions in an organized manner.
- Appoint an Auditor: Within 30 days of incorporation, you need to hire a chartered accountant to audit your accounts.
- File Annual Returns: Every year, file Form AOC-4 and MGT-7A with the Ministry of Corporate Affairs.
- Income Tax Returns: Your OPC must file annual ITRs, even with a low turnover.
- Board Meetings: Even if you’re the only director, at least one board meeting is required every six months.
- Other Licenses (if applicable): GST registration, IEC, or state-specific registrations might be needed depending on your business type.
Our Comprehensive Registration Services for the OPC
A One Person Company might be a one-man show, but you’re never going solo.
At Mercurius, we help solo founders, freelancers, and consultants across India launch and manage their OPCs with ease. From choosing the right structure to registration, ROC filings, taxes, and annual compliance, we’ve got it all covered so that your OPC journey is smooth, sorted, and stress-free.
Here’s what our OPC services include:
- Initial consultation to see if OPC is right for you
- Name search and DSC generation
- Filing of SPICe+ Part A & B, including PAN, TAN, and GST (if needed)
- Drafting of MoA, AoA, and nominee consent
- Post-registration support with opening bank accounts and setting up your systems
- Ongoing compliance help, like bookkeeping, auditing, and annual returns
Ready to Get Started?
Whether you just want to ask a few questions or you are ready to apply for One Person Company online, we’ll walk you through it step-by-step. Our goal is simple: help you go from idea to operation—quickly, legally, and confidently.
Feel free to contact us.
FAQs
The big difference lies in structure and protection. A sole proprietorship isn’t separate from you legally, so your personal assets are at risk if the business runs into trouble. An OPC, on the other hand, creates a legal wall between you and the company, offering more credibility and safety.
Unfortunately, no. At present, OPCs are only open to Indian citizens who reside in the country for at least 120 days during the financial year. NRIs can’t open an OPC, but they can explore private limited companies if they wish to invest or start a business in India.
Not anymore. Earlier, OPCs had capital limits, but now you can start with whatever suits your business—₹10,000 or ₹1,00,000, it’s your call. The key is to choose a capital amount that makes sense for your operations, not because a rule says so.
Yes, absolutely. Just because you're a one-person company in ownership doesn’t mean you have to work alone. You can hire as many employees as your business needs—salespeople, marketers, developers, or admin staff. The OPC structure affects control, not your ability to grow a team.
Yes, just like other companies. Within 30 days of registering your OPC, you need to appoint a Chartered Accountant as your statutory auditor. This person will review your books and help you stay compliant with financial reporting rules throughout the year.
OPCs are taxed just like private limited companies. The current rate is 22%, plus surcharge and cess, under the new corporate tax regime. Even if your business is small, you’ll need to file annual income tax returns and handle TDS or GST if they apply.
Yes, you can. If your business grows or you want to add co-founders, you can convert your OPC into a private limited company. It’s a straightforward process with MCA filings. In fact, many solo founders take this route once they scale.
At the time of registration, you’ll nominate someone to take over in case something happens to you. If needed, that nominee will become a new member of the company. This ensures your business doesn’t get stuck or dissolved because of unexpected events.
Yes, you need a registered office address in India for official correspondence. It doesn’t have to be a fancy office—it could be your home or a co-working space. Just make sure you have the necessary documents like utility bills and NOC (if it’s rented)..
If your documents are in order, the whole process usually takes 7 to 10 working days. It includes everything from getting your digital signature to receiving your Certificate of Incorporation. Delays usually happen only if there’s a documentation error or name rejection.
