One Person Company Registration: Full Guide for Indian Founders

Starting your own business but don’t want a partner? A One Person Company (OPC) might be the best option for you. This unique structure allows a single person to run a company with limited liability, legal recognition, and simplified compliance. In this blog, we’ll walk you through everything you need to know about OPC registration in India, from benefits to registration steps and government support.

What is One Person Company?

A One Person Company (OPC) is a type of company that has only one shareholder and one director. It combines the benefits of a sole proprietorship and a private limited company. OPC full form is "One Person Company" and is governed by the Companies Act, 2013.

One person company meaning is simple — it's a structure where an individual can register a business that has a separate legal identity. This setup offers protection from personal liability, and is ideal for solo entrepreneurs.

One person company example in India: A freelance app developer who wants to scale operations without taking on a partner can register an OPC in India.

Eligibility Criteria for One Person Company Registration

To register OPC online in India, you must meet the following criteria:

• The applicant must be a natural person and an Indian citizen (resident or NRI).
• Only one OPC per person is allowed.
• The nominee must also be a natural person and Indian citizen.
• The company cannot engage in banking, finance, or investment businesses.
• The one person company turnover limit is Rs. 2 crore. If it exceeds this or the paid-up capital goes beyond Rs. 50 lakh, conversion to a private limited company is mandatory.
  

Document Required

To complete OPC registration online, you’ll need:

• PAN card and Aadhaar card of the applicant
• Passport-size photograph
• Electricity bill/Utility bill (not older than 2 months)
• Rent agreement (if office is rented)
• No Objection Certificate (NOC) from property owner
• Nominee's PAN and Aadhaar with signed consent in Form INC-3

Benefits of One Person Company Registration

OPC company offers a range of benefits:

• Limited Liability Protection: Personal assets are protected.
• Separate Legal Entity: Treated as an individual under the law.
• Easy Funding: Easier to approach investors and banks.
• Simple Compliance: Fewer formalities than a private limited.
• Full Control: One owner, one decision-maker.
• Perpetual Succession: Company continues even after the owner’s death, thanks to the nominee.

These One Person Company features make it attractive for many solo business owners.

Government Grants for One Person Company

Many state and central schemes support MSMEs and startups, including OPCs:

• Startup India Benefits: Tax exemptions, funding support.
• MUDRA Loans: For micro-businesses.
• SIDBI Funding: Financing for scaling.
• Ease of Doing Business Schemes: Simplified licensing and legal support.

Registering as an OPC private limited opens doors to these opportunities.

How to Register One Person Company

Follow these steps to register OPC online:

1. Get a Digital Signature Certificate (DSC) for the proposed director.
2. Apply for Director Identification Number (DIN) via SPICe+.
3. Reserve Company Name via SPICe+ Part A.
4. Prepare MOA and AOA (Memorandum & Articles of Association).
5. File SPICe+ Part B with all documents.
6. Get Certificate of Incorporation with PAN & TAN automatically allotted.

The OPC registration fees depend on capital, state stamp duty, and professional fees.

Limitations and Disadvantages of OPC

• Only one shareholder allowed.
• Cannot raise equity capital.
• Not suitable for large businesses.
• Cannot operate in financial sectors.
• Higher tax rate compared to LLPs in some cases.

Still, for a single owner company, the ease and control outweigh many of these limitations.

OPC vs Private Limited: Which Company is Best?

Choose OPC private limited if you're starting solo. Switch to Pvt Ltd when ready to scale.

How StartupFlora Helps with OPC Registration

At StartupFlora, we simplify the OPC registration online process:

• Expert consultation to define OPC goals
• Transparent OPC registration fees
• End-to-end document filing support
• Nominee selection guidance
• Fast digital processing
• Post-registration compliance setup

We empower Indian founders to focus on business while we handle the legal work.

FAQs About One Person Company Registration

1. What is the one person company turnover limit?
An OPC must convert to a Pvt Ltd if turnover exceeds Rs. 2 crore.

2. Can NRIs register a One Person Company in India?
Yes, NRIs can register OPCs as per the latest amendments.

3. What are the OPC registration fees in India?
Fees vary but typically range between Rs. 5,000 to Rs. 10,000 including government and professional charges.

4. Is a nominee mandatory for registering an OPC?
Yes, one nominee is required during incorporation.

5. Can an OPC be converted into a Private Limited Company later?
Yes, upon crossing certain financial thresholds.

6. What is the full form of OPC?
OPC stands for One Person Company.

7. What is the best example of a One Person Company in India?
Many solo founders in IT services and consultancy register OPCs to run their business legally.