OPC Registration
One-person company incorporation: limited liability for a single founder, with simpler compliance than a private limited company.
A One Person Company (OPC) allows a single individual to operate a company with limited liability, combining the simplicity of a sole proprietorship with the legal protection of a private limited company. Introduced under the Companies Act, 2013, an OPC must have a nominee director specified in the MoA, who will take over in the event of the sole member's death or incapacity. OPCs are exempt from holding Annual General Meetings (AGMs), reducing compliance burden. However, they must convert to a private limited company if turnover exceeds Rs. 2 crore or paid-up capital exceeds Rs. 50 lakh. OPCs are taxed at the standard corporate tax rate (currently 22% under Section 115BAA for domestic companies).
Key Benefits
- Complete limited liability protection: personal assets are fully protected from business creditors.
- Corporate credibility: OPCs are viewed more favourably by banks, vendors, and clients than sole proprietorships.
- Lower tax rate: taxed at corporate rate, which can be more efficient than individual slab rates.
- Separate legal identity enables the OPC to own property, sign contracts, and raise debt in its own name.
- Simpler compliance compared to a private limited company, with no AGM requirement.
How We Support
- We handle OPC incorporation from start to finish: DIN, DSC, name approval, MoA/AoA, and Certificate of Incorporation.
- We advise on nominee director selection and ensure all nominee-related documentation is in place.
- We manage all annual compliances: ROC filings, ITR, GST returns, and board resolutions.
- We monitor turnover thresholds and guide you on conversion to a private limited company when required.
Limitations to Consider
- Mandatory conversion on crossing Rs. 2 crore turnover or Rs. 50 lakh paid-up capital triggers additional compliance.
- Cannot raise equity from more than one shareholder, so no angel or VC investors in this structure.
- Only Indian citizen residents can incorporate an OPC, which limits cross-border business ownership.
- Nominee arrangements need careful documentation to avoid complications in case of unforeseen events.
Talk to Our CA Experts About Your Specific Needs
From queries to execution, we guide you through each stage of compliance, making the process simple, structured, and stress-free. Call +91 89588 89589 or write to connect@89tca.in for a free consultation.