One Person Company (OPC)
An OPC allows a single entrepreneur to operate a corporate entity with limited liability protection. Introduced in the Companies Act 2013, it eliminates the need to find a second founder while still providing the credibility of a registered company structure.
Key benefits
- Sole Ownership: Complete control over the business without needing a co-founder or dummy director.
- Limited Liability: The founder's personal wealth is entirely protected from business liabilities and debts.
- Corporate Credibility: Features 'OPC Private Limited' in the name, boosting trust with vendors and banks over a sole proprietorship.
- Easy Funding for Solopreneurs: Banks and NBFCs prefer lending to OPCs due to strict MCA regulatory oversight.
- No AGM Required: Exempt from holding Annual General Meetings (AGMs).
- Seamless Conversion: Can be easily converted into a regular Private Limited Company when adding co-founders or raising equity.
Documents required
- PAN Card of the sole Director and the Nominee.
- Identity Proof (Aadhaar/Voter ID/Passport) for Director and Nominee.
- Address Proof (Bank statement/Utility bill) for Director and Nominee.
- Passport size photographs of Director and Nominee.
- Registered Office Proof: Recent electricity or water bill.
- NOC from the owner of the registered office premises.
How it works
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1
Nominee Consent
Securing written consent (Form INC-3) from the designated nominee.
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2
DSC Generation
Procuring a Digital Signature Certificate for the sole director.
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3
Name Approval
Filing SPICe+ Part A for name reservation on the MCA portal.
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4
Drafting Documents
Preparing the MOA, AOA, and required declarations.
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5
SPICe+ Part B Filing
Submitting the final incorporation forms along with AGILE-PRO-S.
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6
Incorporation
Receipt of the COI, PAN, and TAN.
Frequently asked questions
What is a Nominee in an OPC?
The law requires you to appoint a Nominee who will take over the management of the OPC in the event of the sole director's death or incapacity. The nominee must be an Indian citizen and resident.
Can a foreign citizen incorporate an OPC?
Recent amendments allow Non-Resident Indians (NRIs) to incorporate an OPC, but foreign citizens cannot.
Can I issue ESOPs in an OPC?
No. Since there is only one shareholder, you cannot issue equity to employees. You must convert to a Private Limited Company first.
Is an audit mandatory for an OPC?
Yes. Despite being a single-person entity, an OPC is a company and must undergo an annual statutory audit by a Chartered Accountant.
Can I own multiple OPCs?
No. Under the Companies Act, a person can incorporate only one OPC and be a nominee in only one OPC at a given time.