One Person Company

One Person Company

🧾 What is OPC (One Person Company)? | A Complete Guide for Solo Entrepreneurs
Starting a company alone in India? Think it's impossible without a co-founder?
Good news — you can start a company solo, and it’s legally called a One Person Company (OPC).
In this blog, we’ll explain:
•    What OPC means
•    Who can register
•    Cost, rules, and comparison with Pvt Ltd
•    Common FAQs in English and Hindi

What is OPC and its features

👤 Can a Single Person Register a Company in India?
Yes!
An OPC allows a single individual to start and manage a company with limited liability, just like a Private Limited Company.
It was introduced under the Companies Act, 2013, to support solo founders who want the benefit of a corporate structure without needing a partner.
✅ You are both shareholder and director
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📌 What is One Person Company (OPC)?
An OPC is a separate legal entity that gives an individual the ability to:
•    Limit personal liability
•    Access bank loans
•    Get recognized as a proper corporate setup
•    Run operations professionally while being the sole owner
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🧾 कौन कंपनी अकेले रजिस्टर कर सकता है?
कोई भी भारतीय नागरिक जिसकी उम्र 18 वर्ष से ज्यादा है और भारत का निवासी है, वह एक ओपीसी (OPC) रजिस्टर कर सकता है।
इसमें सिर्फ एक शेयरहोल्डर और एक नामित व्यक्ति (Nominee) की आवश्यकता होती है।

⚖️ OPC vs Private Limited – Which is Better?

🔍 Choose OPC if you’re a freelancer, consultant, or solo entrepreneur.
💼 Choose Pvt Ltd if you plan to raise funds, add partners, or scale quickly.
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🧑‍💼 Who is Eligible for OPC Registration?
You can register an OPC if:
•    You’re an Indian citizen and resident (120+ days stay in India per year)
•    You’re not already a member of another OPC
•    You name one nominee (to take over in case of death/incapacity)
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💰 What is the Cost of OPC Registration?
Approximate costs:
•    Government fees: ₹2,000–₹5,000
•    PAN, TAN, GST: Extra (if required)
💸 Total estimated cost: ₹8,000 to ₹15,000 depending on state and consultant
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📈 What is the Turnover Limit for OPC?
As per the latest MCA rules (2021 update):
•    No compulsory conversion into Pvt Ltd unless voluntarily opted
•    However, for tax and credibility, companies with:
o    Turnover > ₹2 crore, or
o    Paid-up capital > ₹50 lakh,
may choose to convert to a Private Limited structure
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❌ What is a Disadvantage of OPC?
Some limitations include:
1.    Not allowed to raise equity capital from investors
2.    Only one shareholder allowed — no flexibility
3.    Can’t carry out Non-Banking Financial Activities (like chit fund, leasing, etc.)
4.    Conversion to Pvt Ltd mandatory in some cases
5.    Not ideal for VC-backed startups
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👥 Can OPC Hire Employees?
Yes!
An OPC can hire employees, open a current bank account, sign contracts, pay salaries, deduct TDS, and act just like any other registered company.
The only restriction is on ownership — not operations.
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🧠 Final Words
A One Person Company is the perfect starting point for:
•    Solopreneurs
•    Freelancers
•    Coaches
•    Consultants
•    Early-stage startups with one founder
You get the credibility of a company, the flexibility of being solo, and the safety of limited liability.
💡 Don’t let lack of a partner stop your dreams. OPC is your legal shortcut to entrepreneurship.
 

How is OPC Taxed in India? | Taxation, Compliance & FAQs for One Person Company

If you’re a solo entrepreneur running or planning to start a One Person Company (OPC) in India, one question always comes up — “How is OPC taxed?”
But beyond tax, there are other doubts too — like GST, audit, and even closure.
In this blog, we’ll cover everything you need to know in simple, clear language.
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💸 How is OPC Taxed?
OPC is treated like a Private Limited Company for taxation purposes.
•    Flat corporate tax rate of 22% (under new regime, without deductions)
•    Effective tax rate with surcharge and cess = ~25.17%
•    OPCs must file ITR-6 every financial year
Also applicable:
•    TDS deduction for salaries or payments to vendors
•    Advance Tax if liability exceeds ₹10,000
•    GST if turnover exceeds threshold (see below)
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🧾 Is GST Registration Mandatory for OPC?
✅ Only if your annual turnover exceeds ₹40 lakhs (₹20 lakhs for service providers)
✅ Or if you’re doing interstate sales or working with e-commerce platforms
If your OPC deals only within a state and earns less than ₹40L/year, GST registration is not mandatory.
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🚀 How to Start a One Person Company?
Here’s a step-by-step guide:
1.    Choose a unique name and get approval from MCA
2.    Get Digital Signature Certificate (DSC) for the director
3.    Apply for Director Identification Number (DIN)
4.    Draft MOA & AOA stating single ownership
5.    File for incorporation using SPICe+ form on MCA portal
6.    Appoint a Nominee (mandatory for OPC)
7.    Get PAN, TAN & bank account post-incorporation
Registration takes around 7–10 working days.
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💰 What is the Cost of Closing an OPC?
The cost depends on the method of closure:
•    Fast Track Exit (FTE): ₹10,000–₹15,000 (if no liabilities)
•    Voluntary liquidation: ₹25,000–₹50,000 (involving legal notices, ROC filings, auditor help)
➡️ Professional/legal fees are separate and may vary.
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👤 Who is Eligible for OPC?
•    Only Indian citizens and residents (staying in India 120+ days/year)
•    Must be 18+ years old
•    Can’t be member of more than one OPC at a time
A Nominee must also be appointed during incorporation who can take over in case of death/incapacity.
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❌ Can OPC Have 2 Shareholders?
No.
By law, OPC can have only one shareholder.
However, you can convert it into a Private Limited Company later if you want to bring in more shareholders.
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💡 How Can OPC Save Tax?
While OPC pays a flat corporate tax, it can save tax through:
•    Claiming business expenses: rent, salary, internet, office setup
•    Depreciation on assets like laptops, office furniture
•    Paying reasonable salary to the director (this becomes an expense for the company)
However, OPC cannot avail the 15% concessional tax for new manufacturing companies.
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🏢 Is OPC Better than Proprietorship?

➡️ OPC is better if you want legal recognition, brand trust, and limited liability.
➡️ Proprietorship is easier if you want to test an idea without compliance burden.
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📋 Does OPC Need Audit?
Yes, if turnover exceeds ₹2 crore OR paid-up capital exceeds ₹50 lakh.
Also:
•    Must maintain books of accounts
•    Statutory audit by a CA is mandatory under Companies Act, not income tax act
•    File AOC-4 and MGT-7 annually
Even if audit is not mandatory, it’s advised for funding or credibility.
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If you're running a solo business or planning to start one, you’ve likely come across the term OPC (One Person Company). But how does it differ from a sole proprietorship? Is it a private or public company? Who owns it — and how much does it cost to maintain?

In this blog, we’ll answer the most common questions related to OPC structure, ownership, audit, compliance, and more — in easy-to-understand language.

📋 Does OPC Need Audit?

Yes — but only under certain conditions:

Statutory audit is mandatory if:

Turnover exceeds ₹2 crore, or
Paid-up capital exceeds ₹50 lakh
Even if your OPC is small, you’ll still need to maintain basic books of accounts, and file ROC returns (AOC-4 & MGT-7) annually.

🏢 Is OPC a Private or Public Company?

An OPC is legally treated as a type of Private Limited Company.

It is registered under the Companies Act, 2013, and is classified as “private” even though it has only one member.

But unlike regular Pvt Ltd companies, OPC has only one shareholder and a nominee.

👤 Who is the Owner of an OPC?

The person who registers the OPC is the sole owner (shareholder) and can also be the director.

OPC must also have a nominee — someone who automatically becomes the owner in case the original member dies or becomes incapacitated.

💰 What is the Capital Limit of a One Person Company?

There’s no minimum capital requirement anymore.

But to continue as an OPC:

Paid-up capital must not exceed ₹50 lakhs
Turnover must not exceed ₹2 crores
If these limits are breached, the OPC may have to convert into a Private Limited Company.

📄 What is the Cost of OPC Compliance?

Here’s a rough estimate of annual compliance costs:

Compliance

Cost (Approx.)

Statutory Audit - ₹5,000–₹10,000

ROC Filings - ₹2,000–₹5,000

ITR Filing - ₹2,000–₹4,000

Professional Fees - ₹5,000–₹10,000

💸 Total annual cost: ₹10,000–₹20,000 depending on turnover and consultant

🔄 How Do I Convert My OPC to a Private Company?

Steps to convert OPC to Pvt Ltd:

• Pass a shareholder resolution
• Increase members (minimum 2) and directors (minimum 2)
• File INC-6 form with ROC
• Submit revised MOA & AOA
• Update PAN, TAN, GST if required

⏱️ Process takes 2–4 weeks post-documentation.

🧑‍💼 Which is Better: Ltd or Pvt Ltd for Jobs?

From a job seeker’s perspective, there’s no difference.

• Pvt Ltd
• Used by private businesses
• Ltd

Usually refers to Public Limited Companies, often listed

Both can offer good roles, but Pvt Ltd companies are more common in the startup and SME space.

👥 How Many Directors Are There in an OPC?

OPC requires:

Minimum 1 director
Maximum 15 directors (as per Companies Act)
In most cases, the sole shareholder is also the sole director.

You can appoint more directors as your business grows — but it remains a One Person Company unless converted.

✅ Final Thoughts

An OPC is ideal for solo entrepreneurs who want more structure than proprietorship and limited liability without bringing in partners.

From taxation and compliance to ownership clarity and conversion flexibility, OPC offers a well-rounded option for freelancers, coaches, service providers, and consultants.