Home / One Person Company Registration

Updated on 21 Sep 2021  9.00 AM IST | 4 min read

One Person Company

According to the Companies Act, 1956, Minimum 7 members are required to incorporate a Public limited company while only 2 members are needed to register a private limited company. As per provision of section 2(62) of the companies act, 2013, one can start a one-person company in India that requires only one member to form a legal entity. The main benefit of forming a one-person company is that it is a separate legal entity that provides legal protection to the shareholders in the form of limited liability. All those provisions which are applicable to private companies are also applicable to the one person company (OPC).

How to Form a One Person company?

According to the Rule 3 of the Companies (Incorporation) act, 2014, the one person company member should be an Indian citizen and a resident of India. He/she should not be a minor. Resident of India means a person who lives in India for a time period of at least 182 days in a financial year.

A natural person means a normal person. It is not an entity such as a HUF, a corporate body, a partnership firm, or a sole proprietorship. A foreign citizen or non-resident Indian is not allowed to make an OPC in India. Minimum one director is required for the formation of an OPC. It must have one promoter also. Director & promoter can be the same person. As per rule 3 of companies (incorporation) rules, 2014, a person is not eligible to become a member or a nominee of more than one OPC.

It is very essential to choose the nominee of a member of an OPC. The consent of the nominee is required in a written form. A nominee can only take up the charge and become the member of the company, if the member is died or incapable of contract.

What Is Included In Our Package?

Eligibility Consultation

Document Preparation

Application Drafting

Government Fees

Advantages of One Person Company Registration in India

OPC registration is necessary because of the following reasons –

Mandatory Documents for OPC Registration

  • To be given by the director of one person company
    1. Scanned passport size photograph
    2. Scanned copy of passport, voter’s ID card or driving license (Self –attested)
    3. Scanned copy of passport or PAN card (Notarized without fail in case of foreign nationals & NRI’S)
    4. Scanned copy of electricity bill or water bill or gas bill or mobile bill or current bank account statement (Self-attested)
    5. Specimen signature or thumb impression (Blank document with signature)
  • Documents necessary in support of registered office
    1. Scanned copy of property papers printed in English (In case the property is owned)
    2. Scanned copy of rent agreement written in English language.
    3. Scanned copy of NOC from the land owner
    4. Scanned copy of electricity bill or water bill or gas bill or mobile bill or current bank account statement.
  • Note – Registered office space should be a commercial area. It can be your residence as well.

Minimum requirements for OPC Registration

  • Minimum 1 director
  • Minimum 1 shareholder
  • Minimum 1 nominee
  • Minimum authorized capital of Rs.1 lakh
  • The director & shareholder can be the same person
  • Minimum 1 director must be an Indian resident
  • Only Indian residents can become shareholder’s & nominee’s
  • Director identification number (DIN) for all directors
  • Digital signature certificate for one promoter & one witness.

Eligibility for OPC Registration

The eligibility criteria for OPC registration are as follows –

A natural person who is a citizen & resident of India –

  1. Is eligible to incorporate an OPC
  2. Is eligible to be a nominee of the main member in an OPC.

A resident of India is a person who stayed in India for at least 182 days in a relevant tax year is considered as an Indian resident.

Note – In case OPC exceeds the average annual turnover of Rs.2 crore or a paid up capital of Rs.50 Lakhs, it can be converted into a public or private limited company within 6 months period.

Factors to be taken in consideration while Choosing OPC name

Name selection of an OPC is very important and should be done with proper planning as it is your first impression towards buyers, suppliers and stakeholders. Therefore, the name should be unique, relevant and attractive.

You need to keep certain factors in your mind while choosing the OPC name and they are as follows –

Short & simple

A short & simple name always catches the people’s attention as people can easily pronounce it and recall it again as well. It should not be too long.


The name of your OPC should be relevant to the business or work you are doing. It should fit as per company’s branding strategy.


The name of your OPC should be unique and should not be similar to any other existing company or trademark name unless your application will be rejected by MCA.

Not illegal

The name of your OPC should not be abusive or against customs and beliefs of any religion. Kindly don’t use words or phrases which are offensive to a particular group of people or religion. It should be legal in the eyes of law.

Non-violation of laws

The name of your OPC should not be mentioned under and violate the emblems & names act, 1950.

Kindly don’t use the word “British India”

Step By Step Procedure for One Person Company Registration

Fill out registration form

You have to fill up our easy-to-use business registration form and submit the required documents to register your business.

Obtain DIN

Second step to form a one person company is to get the Digital Signature Certificate (DSC) of the director of the company and DIN. A person who wants to form a one person company needs to apply for a director’s identification number via form DIR – 3 along with name & address proof of the director.

Choosing the name of the proposed company

The promoter of one person company (OPC) needs to apply for the company name via E form INC 1 and has to submit the same to the registrar of companies for incorporation. You need to pay rupees 1,000 via debit card or net banking to complete the payment process. For example – Name of the OPC can be “ABC (OPC) Private limited”.

Documents submission

All the essential papers are created by us and then filed with ROC on your behalf.

Approval or Filling of forms with Ministry of Corporate Affairs

All the documents will be attached to Articles of Association (AOA), Memorandum of association (MOA) and SPICe form along with the digital signature certificate of the director. All these documents will be uploaded on the website of ministry of corporate affairs for approval.

Issuance of Certificate of Incorporation

After completing the verification procedure, ROC issues the certificate of incorporation for the commencement of the business.

Concerns Regarding OPC Registration

  • Rupees one lakh is the minimum authorized share capital for one Person Company (OPC)
  • The maximum and minimum number of members for one person company (OPC) is only one.
  • A minor cannot become a nominee or member of a one person company (OPC)
  • An OPC may be formed either as a company limited by shares or limited by guarantee or by unlimited liability.
  • An OPC limited by shares needs to fulfill the following requirements-
    1. The minimum paid up capital needed for an OPC is Rs.1, 00,000.
    2. You are not permitted to transfer the shares.
    3. A person running an OPC is not able to make any offer or invitation to the public to subscribe for company securities.
    4. After two years from the date of incorporation, OPC cannot voluntarily convert into any other type of company. The only exception is - when average annual turnover of an OPC exceeds Rs.2 crores or its paid-up share capital exceeds Rs.50 Lakhs.
    5. Similar Taxes are imposed on OPC just like a private limited company

How Finacbooks help in OPC Registration?

Finacbooks is a leading Indian portal providing accounting, finance & taxation services to small businesses. We are having more than 10 years of experience in helping individuals providing One Person Company registration at a least possible price. We will guide you through the entire process of OPC registration. To avail the best deals on One person company registration, kindly call us at 8800221252 or you can also e-mail us at info@finacbooks.com

One Person Company FAQ’S

The first step to incorporate an OPC is to submit the form INC -1 for the name approval. After the name approval, INC-2 needs to be filed within 61 days to complete the procedure.
The OPC can convert itself either into public or a private limited company if its annual average turnover of immediate previous three consecutive financial years is more than Rs.2 crores or if it’s paid up share capital is more than Rs.50 lakhs.
INC-5 form is used to intimate ROC that OPC exceeded threshold limit and require conversion.
You need to submit form INC-5 within 60 days after exceeding the threshold limit.
The time limit for filing the form INC-6 is 30 days in case the conversion is voluntary whereas it is 6 months in case of mandatory conversion.
A normal person who is a citizen and resident of India is eligible to act as a member of an OPC.
A person can be a member of one OPC only.
Form INC-4 is to be filed in case of consent for withdrawal by the nominee or in case of intimation of change in nominee by the member.
When a normal person is a member in One Person Company and if the same person becomes the member in other OPC by virtue of being a nominee in that OPC, then he/she needs to fulfil the eligibility criteria of a member in one OPC (i.e. duration of 180 days).

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Due Dates

  • GSTR-7 Summary of Tax Deducted at Source (TDS) and deposited under GST laws

    Sep 10th ,2021
  • GSTR-8 Summary of Tax Collected at Source (TCS) by e-commerce operators under GST laws

    Sep 10th ,2021
  • GSTR 1 for Aug 2021 (turnover more than INR. 1.50 Crore)

    Sep 11th ,2021
  • GSTR-6 Details of Input Tax Credit (ITC) received and distributed by an Input Service Distributor (ISD)

    Sep 13th ,2021
  • GSTR-3B is a summary return to be filed by all taxpayers except those registered under the composition scheme, every month. However, from 1st January 2021, there is also quarterly filing option provided to taxpayers with annual aggregate tunrover of up to Rs.5 crore, opting for the QRMP scheme for Aug Month. (Aggregate turnover exceeding Rs.5 crore in the previous financial year)

    Sep 20th ,2021
  • GSTR-3B is a summary return to be filed by all taxpayers except those registered under the composition scheme, every month. However, from 1st January 2021, there is also quarterly filing option provided to taxpayers with annual aggregate tunrover of up to Rs.5 crore, not opting for the QRMP scheme for Aug Month. (Aggregate turnover up to Rs.5 crore in the previous financial year)

    Sep 20th ,2021