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For single investors, a One Person Company creates a private limited company with one shareholder under legal recognition. The process to register a one-person company in India demands adherence to eligibility norms and completion of SPICe+ submissions via the Ministry of Corporate Affairs. OPCs unite limited liability benefits with simplified operational governance.
As per Government corporate registry data, more than 67,000 One Person Companies were active in India as of April 2025. This indicates a sustained use of OPC structure by individual promoters. The framework for incorporation sets out specific requirements in respect of residency, nominee appointment, documentation, and statutory filings to ensure regulatory certainty at the time of company incorporation.
The legal basis for OPC incorporation is provided under the Companies Act, 2013 and the Companies Rules, 2014. The regulations cover the ownership structure, nominees appointment, and the incorporation process. The regulations include:
The MCA administers incorporation with the help of the SPICe+ integrated electronic form system. This includes company incorporation and statutory registrations within a single application.
Eligibility to register a One Person Company in India is clearly defined under Rule 3 of the Companies (Incorporation) Rules, 2014.
Member Eligibility
To register a one-person company in India, the sole member must meet the following requirements:
An individual is permitted to incorporate only one OPC at a time and cannot simultaneously act as nominee in another OPC.
Nominee Requirement
Every OPC must appoint a nominee who will become the member in case of death or incapacity of the original member.
Nominee requirements include:
Restrictions
An OPC cannot:
These restrictions are prescribed under the Companies (Incorporation) Rules, 2014.
The Ministry of Corporate Affairs has an integrated online filing system for incorporation. The SPICe+ online form allows for several registrations to be made in a single go.
A Digital Signature Certificate (DSC) is mandatory for the proposed director and shareholder.
The DSC enables electronic authentication of incorporation documents submitted through the MCA portal.
Name approval is obtained through SPICe+ Part A.
Key requirements:
Approval generally takes a few working days depending on verification requirements.
SPICe+ Part B includes:
The form integrates:
Additional registrations may be completed through AGILE-PRO-S including:
After verification, the following documents are issued by the Registrar of Companies:
• Certificate of Incorporation
• Corporate Identification Number
• Permanent Account Number
• Tax Deduction Account Number
The entire process of incorporation of a company takes one to two weeks, depending on the accuracy of the documents and the verification process.
Accurate documentation is required for smooth approval. All documents are to be self-attested and submitted online.
Required for member, director and nominee:
Foreign nationals acting as directors must submit notarised and apostilled documents where applicable.
Registered office proof includes:
Mandatory filings include:
Government filing charges are set by the Registrar and scale with authorised capital, while state stamp duty on the memorandum and articles varies by jurisdiction and can influence the final outlay. For overseas promoters there are often additional items such as notarisation, apostille and certified translations for foreign identity documents, plus courier and bank verification charges when opening an Indian bank account.
Professional fees vary by complexity and the level of handholding required. Basic filings done through a practitioner for a low-capital OPC commonly fall near the lower end of the range, whereas packages that include nominee formalities, expedited name reservation and post-incorporation registrations incur higher fees. Remember that GST applies to professional services and will add to the outflow. Government filing fees for incorporation and related services are prescribed under the Companies (Registration Offices and Fees) Rules, 2014.
| Component | Approx. Cost (INR) | Approx. Cost (USD) |
|---|---|---|
| DSC (per director) | 1,500-2,500 | 18-30 |
| MCA filing & name fees | 2,000-5,000 | 24-60 |
| Stamp duty (state) | 200-1,000 | 2-12 |
| Professional fees | 5,000-15,000 | 60-180 |
| Estimated total (excl. GST) | 10,000-30,000 | 120-360 |
OPCs benefit from reduced compliance requirements compared with private limited companies while still maintaining corporate governance standards.
Annual Filings
Mandatory filings include:
Financial statements of OPCs are permitted to exclude cash flow statements where applicable under the Companies Act, 2013.
Board Meetings
Where an OPC has only one director:
Statutory Records
Companies must maintain:
OPCs must convert into private limited companies if certain thresholds are crossed.
Mandatory conversion occurs if:
These requirements are defined under the Companies (Incorporation) Rules, 2014.
To register a one-person company in India offers structural advantages for individual investors and entrepreneurs planning market entry.
Some of the key benefits include:
Limited Liability: The shareholder’s liability is limited to subscribed capital.
Single Ownership: Full operational control remains with a single shareholder.
Corporate Status: An OPC is a recognised private limited company under Indian law.
Digital Incorporation: The integrated electronic filing system allows remote incorporation subject to eligibility requirements.
Reduced Compliance: OPCs benefit from simplified governance requirements compared with multi-member companies.
Foreign Investment Considerations: Foreign direct investment is allowed in most industries under the automatic route, as per sectoral regulations framed by the Government of India.
However, to derive benefits from such policies, the following factors need to be in sync:
While OPCs provide a simplified structure, certain regulatory constraints must be considered.
Residency Requirement: The requirement for an Indian resident member limit direct OPC ownership by foreign individuals.
Growth Constraints: The mandatory conversion thresholds may necessitate restructuring as the business grows.
Nominee Dependency: Nominee consent must be maintained and updated where necessary.
Compliance Obligations: Although simplified, statutory filings remain mandatory and penalties apply for non-compliance.
One person company provides a well-defined approach for those who wish to form a recognised business entity. The process of incorporation should be treated as a planned activity rather than a last-minute filing especially when it comes to registered office details and document authenticity.
Many founders find that a One-person company provides enough flexibility at the early stages of the business while leaving room to transition into a larger business structure in future. An OPC is not just a registration choice but the beginning of a disciplined business journey.
