Introduction: What is an OPC and Why It’s a Game-Changer for Solo Entrepreneurs?
India is a country of hustlers and innovators. Whether it’s a tech freelancer, a solo founder, a boutique consultant, or a YouTuber more and more individuals are turning their skills into businesses. But while these entrepreneurs drive the economy, they often face a dilemma: How can I register a business without partners and still enjoy the legal benefits of a company?
Enter the One Person Company (OPC) a unique legal structure introduced by the Companies Act, 2013, that allows a single individual to enjoy the benefits of limited liability, corporate identity, tax advantages, and legal protection, without needing a second shareholder.
At RegistrationMART, with 10+ years of professional expertise, we help first-time founders, digital entrepreneurs, and growing consultants set up their OPC effortlessly and compliantly. This guide simplifies everything you need to know.
Table of Contents:
- What is a One Person Company (OPC)?
- Why Choose OPC Over Sole Proprietorship?
- Features & Benefits of OPC
- Eligibility Criteria for OPC Formation
- Step-by-Step OPC Registration Process (2025)
- Mandatory Documents Checklist
- Post-Incorporation Compliances
- Taxation for OPCs
- Conversion Rules: OPC to Pvt Ltd
- Annual Filings & Penalties
- Common Mistakes to Avoid
- Why Choose RegistrationMART for OPC Registration
What is a One Person Company (OPC)?
A One Person Company is a legal entity that combines the simplicity of a sole proprietorship with the credibility of a private limited company. It allows a single individual to operate a registered company with separate legal identity and limited liability.
Defined under Section 2(62) of the Companies Act, 2013.
In simple terms, it’s a private limited company with only one shareholder.
OPC vs Sole Proprietorship – Key Differences
| Feature | OPC | Sole Proprietorship |
| Legal Identity | Separate | Not separate |
| Liability | Limited | Unlimited |
| Registration | MCA (Govt.) | None |
| Tax Rate | 25% | Individual slab |
| Fundraising | Possible (debt) | Difficult |
| Credibility | High | Low |
| Continuity | Continues (via nominee) | Ends with owner |
Conclusion: OPC is the ideal upgrade from a sole proprietorship for freelancers, coaches, and solopreneurs.
Advantages of OPC Registration
| Benefit | Description |
| ✅ Limited Liability | Personal assets are protected |
| ✅ Legal Recognition | Recognized by vendors, banks, corporates |
| ✅ Tax Benefits | Flat 22–25% rate vs. 30% slab in personal tax |
| ✅ Single Owner Control | No interference from shareholders |
| ✅ Perpetual Succession | Company continues through nominee |
| ✅ Easy to Register | Online MCA process |
| ✅ Greater Credibility | Preferred by vendors & government bodies |
Eligibility Criteria for OPC
You can register an OPC if:
- You are a natural person and Indian citizen & resident (min. 120 days in India in previous FY)
- You are not forming more than one OPC
- Your business’s paid-up capital ≤ ₹50 lakhs
- Your annual turnover ≤ ₹2 crores
Also:
- You must nominate 1 nominee (who takes over in case of death/incapacity)
- A minor cannot be a nominee or incorporator
Step-by-Step OPC Registration Process (2025)
At RegistrationMART, we complete the OPC registration in 7–10 working days. Here’s the process:
Step 1: Digital Signature Certificate (DSC)
- Required for the sole director and nominee
- We help generate DSC within 24–48 hours
Step 2: Name Reservation (RUN)
- File RUN form to MCA to reserve your business name
- Name should end with “(OPC) Private Limited”
Step 3: SPICe+ Form Filing
We file the SPICe+ integrated form for:
- Incorporation
- DIN allotment
- PAN & TAN
- ESIC, EPFO, GST, and bank account (if opted)
Documents submitted:
- MOA, AOA
- Consent letter from nominee (Form INC-3)
- Self-declarations
- Proofs of registered office
Step 4: Certificate of Incorporation
- MCA issues COI along with PAN and TAN
- Your OPC is now a legal entity!
Documents Required for OPC Registration
| Document Type | Required From |
| PAN Card | Owner & Nominee |
| Aadhaar / Passport / Voter ID | Owner & Nominee |
| Address Proof | Latest electricity/water bill |
| Office Address Proof | Rent agreement + NOC from landlord |
| Passport-size Photo | Owner & Nominee |
| Email & Mobile | For OTP verification |
Post-Incorporation Requirements
Once registered, OPC must:
- Open current account
- Print letterheads & company name board
- Issue share certificate (Form SH-1)
- Maintain statutory registers
- Appoint Auditor within 30 days (Form ADT-1)
We take care of all this through our full compliance packages.
Taxation for OPCs in India
| Head | Rate/Details |
| Corporate Tax | 25% (if turnover < ₹400 Cr) |
| Presumptive Tax | Not available |
| GST | Mandatory if turnover > ₹20 lakhs |
| TDS | Apply if applicable |
| MAT | Applicable (15%) |
| Dividend Tax | Nil (since only one owner) |
Pro Tip: You can also opt for 22% concessional tax under Section 115BAA (without exemptions).
OPC Conversion Rules (to Pvt Ltd)
If your OPC:
- Crosses ₹2 Cr turnover, or
- Raises paid-up capital above ₹50 lakhs,
It must convert into a Private Limited Company within 6 months.
You may also voluntarily convert after 2 years from incorporation.
✅ Form to file: INC-6
📅 Annual Compliance Checklist
| Form | Purpose | Timeline |
| AOC-4 | Financial Statements | Within 30 days of AGM |
| MGT-7A | Annual Return | Within 60 days of AGM |
| ITR-6 | Income Tax Return | By Sept 30 |
| ADT-1 | Auditor Appointment | Within 15 days |
| DIR-3 KYC | Director KYC | Annually |
🛡Non-compliance penalty: ₹100/day per form + additional fines
❌ Mistakes to Avoid While Forming OPC
- Selecting ineligible person as nominee
- Using non-unique or trademarked company name
- Registering more than one OPC in your name
- Missing post-registration filings (like auditor appointment)
- Using residential address without NOC or proof
How RegistrationMART Helps
At RegistrationMART, we simplify the process from start to finish, with unmatched accuracy, speed, and compliance.
Our OPC Package Includes:
✅ Free name consultation
✅ DSC & DIN
✅ MOA, AOA, SPICe+ filing
✅ PAN, TAN, GST (optional)
✅ Nominee documentation
✅ Auditor appointment
✅ First-year compliance support
✅ Lifetime legal advisory
We’ve helped over 1,000+ solo entrepreneurs register and scale legally!
Conclusion: Give Your Solo Business a Legal Power Boost
A One Person Company is the perfect balance between personal control and professional structure. It gives you the flexibility of sole ownership along with the legal shield of a company.
If you’re serious about your brand, want to scale, or need legal credibility OPC is your best starting point in India. Let RegistrationMART be your trusted guide to launch your OPC startup the right way
