One Person Company (OPC) — Complete Guide for Solo Entrepreneurs (2025)
Turn your solo hustle into a legally protected company. Step-by-step OPC registration, compliance, and expert help from RegistrationMART.
1. What is a One Person Company (OPC)?
A One Person Company (OPC) is a corporate structure introduced under Section 2(62) of the Companies Act, 2013. It lets a single individual own a private limited company with limited liability and a separate legal identity — combining the best of a sole proprietorship and a private limited company.
2. OPC vs Sole Proprietorship — Key Differences
| Feature | OPC | Sole Proprietorship |
|---|---|---|
| Legal Identity | Separate | Not separate |
| Liability | Limited | Unlimited |
| Registration | MCA (Govt.) | None |
| Tax Rate | Corporate rates (approx 22–25%) | Individual slab |
| Fundraising | Possible (debt easier) | Difficult |
| Credibility | High | Low |
| Continuity | Perpetual (via nominee) | Ends with owner |
Conclusion: OPC is an ideal upgrade for freelancers, consultants, creators and solopreneurs who want credibility and protection without co-founders.
3. Features & Benefits of OPC
- Limited Liability — Personal assets remain protected.
- Legal Recognition — Easier bank relationships, vendor contracts, and credibility with clients.
- Tax Benefits — Corporate tax regimes (options to opt 22%/25% based on eligibility).
- Single Owner Control — Only one shareholder/director in control.
- Perpetual Succession — Company continues via nominated person.
- Simple Online Process — Incorporation through MCA’s SPICe+ form.
4. Eligibility Criteria for OPC Formation
You can form an OPC if:
- You are a natural person and an Indian citizen & resident (min. 120 days in India in previous financial year).
- You do not already own another OPC.
- Paid-up capital of the company ≤ ₹50 lakhs.
- Annual turnover ≤ ₹2 crores.
- You nominate 1 nominee (cannot be a minor).
5. Step-by-Step OPC Registration Process (2025)
Typical turnaround time (RegistrationMART): 7–10 working days once documents are ready.
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Digital Signature Certificate (DSC)
DSC is required for the sole director and nominee — we assist to generate in 24–48 hours.
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Name Reservation (RUN)
File RUN to MCA to reserve company name. Name must end with “(OPC) Private Limited”. We advise on name uniqueness and trademark checks.
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SPICe+ Form Filing
SPICe+ is the integrated form for incorporation, DIN allotment, PAN & TAN and optional registrations (ESIC, EPFO, GST, bank account). We prepare MOA, AOA, nominee consent, and other declarations.
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Certificate of Incorporation
MCA issues COI along with PAN & TAN — after this your OPC exists as a legal entity.
6. Mandatory Documents Checklist
| Document Type | Required From |
|---|---|
| PAN Card | Owner & Nominee |
| Aadhaar / Passport / Voter ID | Owner & Nominee |
| Address Proof (latest bill) | Owner & Nominee |
| Office Address Proof (rent agreement + NOC) | Registered office |
| Passport-size Photo | Owner & Nominee |
| Email & Mobile | For OTP verification |
7. Post-Incorporation Requirements
After incorporation you must complete several formalities:
- Open a current bank account in company name.
- Print letterhead and install company name board at registered office.
- Issue share certificate (Form SH-1).
- Maintain statutory registers and records.
- Appoint an auditor within 30 days (Form ADT-1).
RegistrationMART offers full compliance packages to finish these tasks for you.
8. Taxation for OPCs
| Head | Rate / Details |
|---|---|
| Corporate Tax | ~25% (if turnover < ₹400 Cr) — options to opt for concessional 22%/Section 115BAA depending on conditions |
| Presumptive Tax | Not available for OPCs |
| GST | Mandatory if turnover > ₹20 lakhs (threshold may vary by state) |
| TDS | Apply if applicable on payments |
| MAT | Applicable (approx 15%) |
Pro Tip: Choosing concessional tax slabs under Section 115BAA may restrict some exemptions — consult your tax advisor before opting.
9. Conversion Rules: OPC → Private Limited
An OPC must convert to a Private Limited Company if:
- Its annual turnover exceeds ₹2 crores, or
- Its paid-up capital goes above ₹50 lakhs.
Conversion timeline: Within 6 months of crossing thresholds. Voluntary conversion is allowed after 2 years from incorporation. Form to file: INC-6.
10. Annual Filings & Penalties
| 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: penalties and daily fines (e.g., ₹100/day per delayed form) plus additional statutory fines.
11. Common Mistakes to Avoid
- Choosing an ineligible nominee or director.
- Using a non-unique or trademarked company name without checks.
- Registering more than one OPC in the same name.
- Delaying post-registration filings (auditor appointment, statutory registers).
- Using a residential address without a proper NOC or proof.
12. Why Choose RegistrationMART for OPC Registration
At RegistrationMART we combine experience, speed and compliance to make OPC registration frictionless.
Our OPC Package Includes
- Free name consultation and trademark checks
- DSC & DIN
- MOA, AOA drafting & SPICe+ filing
- PAN, TAN & optional GST
- Nominee documentation & auditor appointment
- First-year compliance support & lifetime legal advisory
Proven track record: We’ve helped 1,000+ solo entrepreneurs register and scale legally.
Conclusion — Give Your Solo Business a Legal Power Boost
An OPC provides the best balance between autonomy and corporate protection. It gives you legal credibility, limited liability, and an easier path to scale. If you’re serious about growth, brand credibility, or formal contracts with clients and vendors — forming an OPC is a smart and practical step.
Ready to register your OPC? Book a consultation with RegistrationMART and we’ll handle the rest.
