Recently, the One Person Company (OPC) was introduced as a successful refinement over the sole proprietorship. In OPC, a single promoter assumes full control over the company while restricting his/ her liability towards their contributions to the company. The said person will then be the sole shareholder and director (although a nominee director is present, but has zero control unless the actual director proves incapable of entering into the contract). OPC can also be known as a Single Man Company or a Single Person Corporation, etc.
Under section 2 (62) of the Companies Act 2013, a Single Person Limited Company means a company incorporated under the Companies Act 2013 having only one person as a member. It is a new form of business that came into existence through the Companies Act in the year 2013. It is a form of business having a separate legal entity from its promoter, just like other forms of companies. The main advantage of a One Man Company or One Person Corporation form of company is that there can be only one member with whom the company can get incorporated, while a minimum of two members is required for incorporating and maintaining a private limited company, or seven members are required for incorporating and maintaining a public limited company.
Through this form of a business single person can operate a corporate entity with limited liability protection; an OPC does have a few limitations.
Under this form of company, the member needs to compulsorily nominate one person as their/nominee for incorporating the company, and that nominee will give his/her consent under form INC-3 for becoming the nominee of such person.
Why The 1 Person Company
➲ East way to jump into the corporate world
One Person Limited Company form of business is an easy and simple way to get into the corporate world, and it is an easy way for a good start-up. As compared to a Sole Proprietorship, it is a better option for the start-up, as in this form of business liability of the member is limited. It is a good platform for incorporating a company form of business, having ownership, and extremely feasible for companies like One Person Consulting Company, etc.
➲ Business credibility
If a business is established as a proprietorship or partnership, it is not registered with the Ministry of Corporate Affairs and cannot be found in the databases of the online company or LLP. Often, there is no reliable evidence of the existence of the company, making it difficult to open a bank account, acquire trustworthy clients, or receive credit from vendors.
➲ No Minimum Capital Required
From the point of view of incorporation, there is no minimum capital required for incorporating a private limited company. As per Companies Law 2013, you can start a private limited company with 0 paid-up capital. Whereas if you want to incorporate a public limited company, you need to have 5 Lakh as minimum paid-up capital
➲ Liability is Limited
Limited Liability means the status of being legally responsible for a company's debts only to a limited sum. Like proprietorships and partnerships, the members' responsibility for the company's debts is limited in a limited liability company. In other words, the responsibility of a company's members is limited only to the sum of the face value of the shares they hold.
One Person Company Registration
➲ Apply for the name
The first step in single-person company registration is to reserve the name of the proposed company in the Part of SPICe Plus (SPICe+) form. In this form, choose your business activity and file for two proposed names. If CRC rejects the proposed name, then file again with two new names within a certain time limit from the date of rejection (15 days).
➲ Apply for DSC
The next step to register an OPC is to apply for a DSC (Digital Signature Certificate), which will be used for signing the forms by proposed directors and proposed members, respectively. Procure DSC for both proposed directors and members, if both are different.
➲ Fill the SPICe plus Form (SPICe+)
Once your name gets reserved under it will be valid for 20 days from the date of approval. Within 20 days, you have to fill out the form and upload it online. SPICe+ is an advanced form combination of 8 forms in one. Through this proposed company can apply for at once:
- Name reservation
- Incorporation
- Apply for DIN
- TAN
- PAN
- EPFO
- ESIC
- GSTIN
- INC-9
Next step is to fill part B of SPICe +, which will contain all the details related to OPC company registration, like number total number of directors and members, the Authorized share capital, the paid-up capital, the number of shares held by members, the company registered address details, directors and member details, and will require attachments for proof. Then draft the MOA (memorandum of association)-INC-33 and AOA (Article of Association)- INC-34 of the proposed company, Nominee Form- INC-3, then fill the form required for EPFO and ESIC registration with details, then fill the AGILE form for procuring GSTIN. After filling all these in, attach the signature and then upload it to the MCA website. One Person Company registration charges depend upon the proposed Authorized Capital and also differ from state to state.
One Person Corporation requirements of documents for Incorporation are as follows:
- PAN card
- Photograph
- Aadhar card
➲ ID proof of proposed Director and member (anyone):
- Passport
- Voter’s ID
- Driving License
➲ Address proof of proposed member and Nominee (anyone):
- Telephone bill
- Mobile Bill
- Bank statement
- Electricity bill
➲ Address proof for the principal place of business of the proposed company (anyone)
- Utility bills like telephone bills, electricity bills, gas bills, water bills
- Rent agreement with rent slip
- Proof of ownership
Conclusion: One Person Company and Its Registration Process
The concept of a One Person Company (OPC) is a revolutionary step under the Companies Act, 2013, enabling solo entrepreneurs to enjoy the benefits of a corporate structure without the need for multiple shareholders. OPC combines the ease of sole proprietorship with the limited liability and legal status of a private limited company.
The registration process for an OPC is simple, fully online, and cost-effective, involving steps like obtaining a Digital Signature Certificate (DSC), Director Identification Number (DIN), name approval, and filing incorporation documents with the Ministry of Corporate Affairs (MCA).
In conclusion, registering an OPC is an excellent option for individual entrepreneurs, consultants, and small business owners who want to operate with greater credibility. One Person Company Registration in India, OPC Registration Process, One Person Company Compliance, MCA OPC Registration, OPC Advantages and Disadvantages, limited liability, and structured governance. With platforms like Corpzo.com, the entire process becomes smooth, guided, and compliant — enabling entrepreneurs to focus on growth while the legal and procedural complexities are taken care of professionally.
