One Person Company (OPC) Registration
What is a One Person Company?
According to Section 2(62) of the Companies Act, 2013, a One Person Company (OPC) is a company that has only one person as its member. This structure allows a single entrepreneur to run a corporate entity with limited liability and legal protection.
OPC as a Private Company
Under Section 3(1)(c) of the Companies Act, an OPC is treated as a private company, giving it similar legal status and benefits as other private limited companies.
Eligibility Criteria to Register an OPC
As per Rule 3 of the Companies (Incorporation) Rules, 2014, the following conditions must be met:
- The applicant must be a natural person (not a corporate entity).
- Must be an Indian citizen.
- Must be a resident of India (residing in India for at least 120 days during the previous financial year).
- Minors are not eligible to incorporate an OPC or be a nominee.
Joint Holders
In case shares are jointly held by multiple individuals, they are treated as a single member. Thus, joint shareholders can be considered one member for OPC purposes.
Naming Guidelines for OPC
As per the 2nd Proviso of Section 12(3), the name of the OPC must include the words “One Person Company” in brackets wherever the name is used — including signage, letterheads, and legal documents.
Director Requirements
Section 149(1)(a) states that an OPC must have at least one director. According to Section 152(1), the sole member is deemed to be the first director unless another person is appointed.
Documents Required for OPC Registration
- Identity Proof:
- PAN Card (for Indian nationals – mandatory)
- Passport (for foreign nationals)
- Date of birth must be visible on identity proof. If not, attach a certified birth certificate.
- Address Proof: Acceptable documents include:
- Aadhaar Card, Passport, Voter ID, Ration Card
- Driving License, Electricity Bill, or Telephone Bill (not older than 2 months)
Steps to Register an OPC in India
- Obtain a Digital Signature Certificate (DSC): Required to sign online forms.
- Apply for Director Identification Number (DIN): For the sole director.
- Reserve the Company Name: File a name approval request through the MCA portal.
- Prepare and Submit Incorporation Documents: File SPICe+ forms with RoC along with MoA, AoA, and nominee details.
- Receive Certificate of Incorporation: After verification, the RoC will issue the Certificate of Incorporation.
Conclusion
An OPC is ideal for solo entrepreneurs who want the benefits of a corporate structure, such as limited liability and a distinct legal identity, without involving multiple shareholders. It provides flexibility and ease of management while maintaining compliance with the Companies Act, 2013.