A One Person Company (OPC) is a relatively new form of business introduced under the Companies Act, 2013 to enable a single individual to operate as a company with a separate legal identity. It bridges the gap between a sole proprietorship and a private limited company, giving the benefit of limited liability and corporate structure to a single promoter.
Eligibility to Incorporate OPC:
🔹Only a natural person who is an Indian citizen and resident in India (staying at least 120 days in India during the financial year) can form an OPC.
🔹A person can form only one OPC and cannot be a nominee in more than one OPC.
🔹Minors, companies, LLPs, or other corporate entities cannot form an OPC.
Documents Required:
1. PAN Card & Aadhaar Card of promoter
2. Passport-size photograph
3. Proof of registered office (Rent Agreement or Sale Deed)
4. NOC from the owner of premises
5. Utility bill (electricity/gas/water)
6. Digital Signature Certificate (DSC)
7. Director Identification Number (DIN)
Naming the Company
Every OPC must end its name with “(OPC) Private Limited”. For example:
Whytax Solutions (OPC) Private Limited.
OPC Compliance and Filings
Even though it’s a one-person company, you still need to follow basic compliance:
➡️ File Form AOC-4 (financial statements)
➡️File Form MGT-7A (annual return)
➡️Income Tax Return every year
➡️Maintain proper books of accounts
➡️Hold at least one board meeting every 6 months
➡️Auditor appointment if required
🚫 Restrictions for OPC
✅ Cannot carry out NBFC (investment or finance-related) activities
✅ Cannot voluntarily convert into another company before 2 years, unless:
🔹 Turnover exceeds ₹2 crores, or
🔹Paid-up capital exceeds ₹50 lakhs
If these limits are crossed, conversion into a Private Limited Company becomes mandatory.
Benefits of OPC
✅ Limited liability – Your personal assets are safe from business losses.
✅ Separate legal identity – Your company is treated as a different person under the law.
✅ Single ownership – You don’t need partners or shareholders.
✅ More credibility – Banks and investors trust registered companies more than proprietorships.
✅ Easy conversion – You can convert OPC into a private limited company when your business grows.
Forms Used in Incorporation
To register an OPC, these key forms are used:
🔹 SPICe+ (INC-32): Main application form for company registration
🔹INC-3: Consent form from the nominee
🔹INC-9: Declaration by the subscriber
🔹AGILE-PRO: For GST, EPF, ESIC, and bank account setup
🔹e-MoA & e-AoA: Memorandum and Articles of Association of the company
Difference Between OPC and Sole Proprietorship
