Why OPC is Important for Solo Entrepreneurs
For individual entrepreneurs who want to own a business independently but enjoy the advantages of a registered company, a One Person Company (OPC) is the ideal structure. It gives a single founder full ownership and control while offering limited liability protection and a corporate identity. OPCs are perfect for freelancers, consultants, and small business owners who wish to operate professionally without the complexity of managing partners or shareholders.
About OPC
A One Person Company (OPC), introduced under the Companies Act, 2013, allows a single individual to incorporate a private limited entity. Unlike a sole proprietorship, an OPC enjoys a separate legal status, perpetual existence, and limited liability. The company’s only member serves as both the director and shareholder while appointing a nominee to take over in case of death or incapacity. This flexible yet secure model bridges the gap between a proprietorship and a private limited company.
Benefits of OPC Registration
- Full Ownership & Limited Liability: The entrepreneur retains absolute control while personal assets remain protected.
- Professional Credibility: A registered OPC enhances a business’s reputation among banks, clients, and investors.
- Tax Efficiency: Eligible for lower corporate tax rates and small business exemptions.
- Perpetual Succession: The nominee system ensures smooth continuity of the company.
- Access to Funding: Easier access to bank loans and external funding compared to proprietorships.
- Government Benefits: Eligible for MSME, Startup India, and other government schemes.
- Simplified Compliance: Fewer filings and governance requirements than multi-member companies.
Procedure for OPC Registration
- Name Approval: Select a unique name ending with “(OPC) Private Limited.” The name is verified and reserved through the MCA RUN or SPICe+ service.
- Digital Signature & DIN: Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the company’s director.
- Document Preparation: Draft the Memorandum of Association (MOA), Articles of Association (AOA), and nominee consent letter.
- Filing with MCA: Submit incorporation documents through the SPICe+ form on the Ministry of Corporate Affairs (MCA) portal.
- Government Scrutiny: The Registrar of Companies reviews your submission for legal compliance.
- Certificate of Incorporation: On approval, receive the Certificate of Incorporation along with your Corporate Identification Number (CIN), PAN, and TAN.
- Post-Registration Support: Agarwal Avinash & Co assists with current bank account opening, GST registration, and post-incorporation compliance setup.
Documents Required
For Owner/Director:
- PAN Card and Aadhaar Card.
- Passport-size photograph.
- Proof of residence (bank statement, utility bill, etc.).
- Digital Signature Certificate (DSC).
For Nominee:
- PAN Card and Aadhaar Card.
- Consent letter and signed declaration.
- Proof of identity and address.
For Registered Office:
- Rent agreement or property ownership proof.
- No Objection Certificate (NOC) from the owner.
- Latest utility bill showing address.
Additional Requirements:
- Director Identification Number (DIN) application.
- Draft MOA and AOA.
- Declaration of business activity.
Pricing and Government Fees
OPC registration costs are affordable and vary based on capital investment and professional requirements.
- Government Filing Fees: ₹ 1,000 - ₹ 3,000 (depending on authorized capital).
- DSC Issuance: ₹ 1,000 - ₹ 2,000.
- DIN Application: ₹ 500 per director.
- Professional/Agarwal Avinash & Co Fees: ₹ 5,000 - ₹ 10,000 (full support package).
Average Completion Time: 15-25 working days depending on document readiness and MCA approval.
Advantages of OPC
- Single ownership with complete control and limited liability.
- Separate legal identity with perpetual existence.
- Greater credibility with clients and institutions.
- Fewer compliance formalities than private limited or LLP.
- Easy to convert into a Private Limited Company when the business expands.
Disadvantages of OPC
- Restricted ownership transfer - only one shareholder allowed.
- Limited funding options compared to multi-member companies.
- Not eligible for certain venture capital or equity investments.
- Higher compliance cost compared to a sole proprietorship.
- Nominee approval required for smooth ownership transition.
OPC Compliance Requirements
After incorporation, an OPC must maintain basic statutory compliance to remain legally active:
- File Annual Returns and Financial Statements with the Registrar of Companies.
- Conduct at least two Board Meetings per year.
- Maintain Statutory Registers and Minutes Books.
- File Income Tax Return annually.
- Register under GST if turnover exceeds the prescribed limit.
- Update nominee details and company records as required.
Timeline
OPC registration typically takes 15-25 working days, depending on government processing, documentation approval, and digital verification timelines. Agarwal Avinash & Co ensures that every step is accurate, transparent, and completed efficiently.
Deliverables
Once registered through Agarwal Avinash & Co, you receive:
- Certificate of Incorporation (CIN).
- PAN and TAN for the company.
- Memorandum and Articles of Association.
- Nominee consent documentation.
- Assistance in opening a current bank account.
- Post-incorporation checklist and legal compliance guide.
Why Choose Agarwal Avinash & Co
- Experienced professionals in company incorporation and taxation.
- 100% online process for zero paperwork and faster turnaround.
- Complete guidance from name reservation to compliance filing.
- Transparent pricing with no hidden costs.
- Continued support for GST, MSME, and tax registrations.
- Trusted by startups, freelancers, and entrepreneurs nationwide.
Agarwal Avinash & Co ensures that your OPC registration is simple, compliant, and professionally managed-so you can focus entirely on building your business.
FAQs
1. What is a One Person Company (OPC)?
An OPC is a registered private company owned and managed by one person, offering limited liability and corporate status.
2. Who can register an OPC?
Any Indian citizen residing in India (minimum 182 days per financial year) can form an OPC.
3. Can an OPC have employees or directors?
Yes. While only one member owns the company, additional directors (up to 15) can be appointed.
4. Is OPC registration mandatory?
Not mandatory but beneficial for scaling, funding access, and legal protection.
5. Can a minor or foreign national form an OPC?
No. Only adult Indian citizens can incorporate an OPC.
6. What happens if turnover exceeds the limit?
An OPC must convert into a Private Limited Company once its turnover exceeds ₹ 2 crore or paid-up capital crosses ₹ 50 lakh.
7. Can an OPC raise funds?
Yes. It can raise funds through loans, debentures, or private investors but not through public shares.
8. How is an OPC taxed?
OPCs are taxed as domestic companies under the Income Tax Act at applicable corporate tax rates.
Register Your OPC with Agarwal Avinash & Co Today
Start your entrepreneurial journey with legal recognition, limited liability, and complete control.
Agarwal Avinash & Co manages the entire process-from name reservation to company incorporation-professionally and efficiently.
Call / WhatsApp: +91 - 9743956549
Email: caavinash1985@gmail.com
Visit: www.caagarwalavinash.com
Build. Register. Grow-with Agarwal Avinash & Co by your side.