What is a One Person Private Limited Company?
Are you a
solo entrepreneur with big dreams? Do you want the benefits of a private limited company but don’t have a business partner? A
One Person Private Limited Company (OPC) might be the perfect fit for you.
In this blog, we’ll explain what an OPC is, its benefits, how it works, and how to register one in India.
A
One Person Private Limited Company is a type of business structure in India that allows a single individual to own and run a company with limited liability and a separate legal identity.
Introduced under the Companies Act, 2013, this concept was created to support solo founders by giving them a corporate structure that offers both control and credibility.
Key Features of an OPC
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Single Owner: Only one person can act as the shareholder and director.
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Limited Liability: The owner’s personal assets are protected in case of business losses or legal issues.
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Separate Legal Entity: The company is distinct from its owner in the eyes of the law.
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Perpetual Succession: The company continues to exist even after the owner’s death (a nominee director must be appointed)
Benefits of an OPC
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Full Control
The owner has complete control over the company’s decisions without interference.
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Credibility & Trust
An OPC enjoys higher credibility than a sole proprietorship. Banks and investors are more likely to trust a registered company.
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Legal Protection
The owner's personal wealth is not at risk for the company’s debts or liabilities.
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Tax Advantages
An OPC can avail tax deductions available to private limited companies.
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Easy to Manage
With fewer compliance requirements than a traditional private limited company, it's easier to operate.
Who Can Register an OPC?
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Only an Indian citizen who is a resident in India (lives in India for at least 120 days in the last financial year) can form an OPC.
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A person cannot incorporate more than one OPC or be a nominee in more than one OPC.
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Apply for Digital Signature Certificate (DSC)
Required for signing electronic documents.
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Apply for Director Identification Number (DIN)
For the proposed director (the owner).
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Name Approval
Choose a unique name and get it approved through the RUN (Reserve Unique Name) service.
File Incorporation Documents
Submit the SPICe+ form along with required documents such as:
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PAN and Aadhaar of the owner
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Proof of registered office
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Consent of nominee
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MOA & AOA (Memorandum and Articles of Association)
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Receive Certificate of Incorporation
Once approved, you'll receive your Certificate of Incorporation, PAN, and TAN.
Important Points to Remember
Conclusion
A One Person Private Limited Company is an ideal business structure for solo entrepreneurs looking for limited liability, legal recognition, and ease of management. It offers the perfect mix of flexibility and protection, making it a great first step for individuals planning to scale their ventures.
If you're planning to start your business alone, consider registering an OPC and give your startup the professional edge it deserves.
Created & Posted by Ravi Kumar
CA Article at TAXAJ
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