One Person Company Registration: Process, Rules & Benefits

One Person Company Registration: Process, Rules & Benefits

Are you a solo entrepreneur looking to start a business with limited liability protection? One Person Company (OPC) registration is the best option for individuals who want to operate as a private limited company while enjoying simplified compliance and legal benefits.

At Lal Ghai & Associates, the Best Company Secretary in Ludhiana, we provide end-to-end OPC registration services, ensuring that your business complies with the latest MCA and government regulations.

What is a One Person Company (OPC)?

A One Person Company (OPC) is a legal business structure under the Companies Act, 2013, allowing a single individual to operate a company with limited liability protection and a separate legal identity. It is an ideal choice for small businesses, consultants, and freelancers who want to scale while keeping their personal assets secure.

Key Features of an OPC:

✅ Single Owner, Limited Liability
✅ Separate Legal Identity
✅ Perpetual Succession with Nominee Provision
✅ Less Compliance Compared to Private Limited Companies
✅ Easy Fundraising & Credibility

Step-by-Step Process for OPC Registration in India

The Ministry of Corporate Affairs (MCA) has simplified the OPC registration process through the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form, combining multiple registrations into one streamlined process.

1. Obtain Digital Signature Certificate (DSC)

Since OPC registration is completely online, the proposed director must obtain a DSC from a certified authority to digitally sign the incorporation documents.

2. Apply for Director Identification Number (DIN)

A Director Identification Number (DIN) is required for the sole director and can be obtained while filing the SPICe+ form.

3. Name Reservation (SPICe+ Part A)

  • Submit two preferred company names for approval.
  • The MCA checks for uniqueness and naming compliance.
  • Once approved, the name is reserved for 20 days.

4. Drafting of Incorporation Documents

  • Memorandum of Association (MOA) – Defines the objectives and purpose of the company.
  • Articles of Association (AOA) – Lays out the internal rules and regulations.
  • Nominee Consent Form (INC-3) – Required to nominate a successor in case of death or incapacity.

5. Filing SPICe+ Part B for Incorporation

  • Submit details of registered office address, capital structure, and director information.
  • The form also covers DIN, PAN, TAN, and GST registration.

6. Issuance of Certificate of Incorporation (COI)

Once all documents are verified, the Registrar of Companies (ROC) issues the Certificate of Incorporation (COI) with:
📌 Corporate Identification Number (CIN)
📌 PAN & TAN for the Company
📌 GST Registration (if required)

Your One Person Company is now officially registered!

Government Regulations & Latest Updates for OPC (2024-25)

✅ Eligibility Criteria for OPC Registration

  • Only an Indian citizen who has resided in India for at least 182 days in the previous year can register an OPC.
  • The owner must appoint a nominee for succession in case of unforeseen circumstances.

✅ No Mandatory Conversion

  • Earlier, OPCs had to convert into a Private Limited Company once they crossed ₹50 lakh paid-up capital or ₹2 crore turnover.
  • As per recent amendments, there is no automatic conversion, making it easier for small businesses to operate.

✅ Commencement of Business (Form 20A)

  • OPCs must file Form 20A within 180 days of incorporation as proof of business commencement.

✅ Annual Compliance Requirements

  • Filing of financial statements and annual returns with the MCA.
  • Statutory audits (if turnover exceeds ₹2 crore).
  • Maintaining proper books of accounts.

⚠️ Non-compliance with these norms may lead to penalties and legal action.

Why Register an OPC? – Key Benefits

1. Limited Liability Protection

Unlike a sole proprietorship, where the owner’s personal assets can be at risk, an OPC ensures financial security.

2. Separate Legal Entity

An OPC enjoys distinct legal recognition, allowing it to:
✅ Own property
✅ Enter into contracts
✅ Raise investments & loans

3. Higher Credibility & Fundraising Opportunities

Since an OPC is registered under MCA, it builds trust with investors, banks, and customers, making it easier to raise capital.

4. Perpetual Succession

With a nominee structure, the company continues to exist even if the owner is no longer available.

5. Minimal Compliance & No Board Meetings

✅ No requirement for a Board of Directors.
✅ No need for frequent audits (if turnover is below ₹2 crore).
✅ Less paperwork compared to Private Limited Companies.

Company Registration Statistics in India (2025 Data)

📊 According to MCA data, OPC registrations are on the rise:

 OPCs are driving entrepreneurship in India, offering a perfect structure for solopreneurs and startups.

Why Choose Lal Ghai & Associates for OPC Registration?

At Lal Ghai & Associates, the Best Company Secretary in Ludhiana, we provide:

✅ End-to-End OPC Registration Services
✅ Expert Legal & Compliance Advice
✅ Quick Name Reservation & Document Filing
✅ Affordable & Transparent Pricing
✅ Dedicated Support for MCA Compliance

📞 Contact us today to register your OPC hassle-free!

📍 Branches: Ludhiana | Mohali | Gurugram
📞 Call Us: +91 94636 40466
🌐 Website: www.lgassociates.org