One Person Company

This category was introduced in 2013 under the Companies Act.

An OPC is a type of business structure in India that allows a single person to operate a limited liability company.

This combines the benefits of a sole proprietorship with easy setup and management control with the advantages of a limited liability company

Only one person can be a member of an OPC. The owner’s assets are shielded from business liabilities

The formation of OPC is similar to Private Limited Companies but it is easier and requires fewer formalities

The OPC Taxation is similar to Private Limited Companies, it’s a good option for the owners who want to run the business with limited liability and don’t have multiple founders

Eligibility Criteria

  • Shareholder can be a person who is an Indian Citizen by birth or a person who has stayed in India for at least 182 days.
  • The shareholder must nominate a nominee to become the owner in case of incapacity or death.
  • A minor cannot form an OPC nor can be the nominee in the OPC
  • An OPC cannot be incorporated or converted into a company that pertains to charitable purposes.
  • An OPC cannot engage in non-banking financial investment activities, including investing in securities of any corporate body.
  • If the paid-up share capital of an OPC exceeds ₹50 lakhs or its average annual turnover exceeds ₹2 crores, it must convert into a private limited company or a public limited company.
  • Voluntary conversion into any other type of company is not permitted before two years from the date of incorporation, except if the above financial thresholds are exceeded.

Documents Required