24/7 Chat Support
Got a question or concern? We’re just a message away and happy to help, completely free!
Frequently asked Questions
Only a natural person who is an Indian citizen and resident (staying in India for at least 182 days in the previous financial year) can be a member and nominee of an OPC.
No, an individual can only be a member of one OPC at any given time, as per the Companies Act, 2013.
OPCs don’t get unique tax breaks compared to other companies. They face a 30% corporate tax rate, subject to provisions like Minimum Alternate Tax (MAT). However, deductions for director remuneration and presumptive taxation options can apply.
No, since the Companies (Incorporation) Second Amendment Rules, 2021, OPCs are not required to convert based on paid-up capital or turnover limits. They can remain OPCs even as they grow.
An OPC must:
- Hold at least one board meeting per half-year, with a 90-day gap between any two meetings.
- Maintain proper books of accounts.
- Conduct a statutory audit of financial statements.
- File income tax returns by September 30 each year.
- Submit Form AOC-4 (financials) and Form MGT-7 (annual return) with the ROC.
Minors, foreign nationals, non-residents (less than 182 days in India) or individuals legally unable to contract cannot form an OPC.
Conversion requires a special resolution, increasing directors and shareholders to at least two and obtaining a No Objection Certificate (NOC) from creditors, per the Companies Act, 2013.
An OPC is a single-owner company with limited liability and a separate legal identity under the Companies Act, 2013. Unlike a sole proprietorship, where personal and business liabilities mix, an OPC protects the owner’s personal assets.
Yes, a single person can form a company in India through a One Person Company (OPC) under the Companies Act, 2013. It offers limited liability and simpler compliance compared to other company types.
Absolutely. An OPC offers credibility, legal structure and funding potential, making it ideal for a one-person consulting business while keeping management straightforward.
An OPC can voluntarily convert to a Private Limited Company by passing a special resolution, adding at least one more director and shareholder and obtaining an NOC from creditors.
Only an Indian citizen and resident (182+ days in India in the prior financial year) who is a natural person can start an OPC or act as its nominee.
An OPC offers limited liability, reduced compliance, SSI scheme perks, funding opportunities and tax deductions, making it a secure and attractive choice for solo entrepreneurs.
No, OPCs are taxed like other companies, with a 30% corporate tax rate and provisions like Minimum Alternate Tax (MAT). While they don’t enjoy exclusive tax breaks, you can claim deductions for director remuneration or opt for presumptive taxation under the Income Tax Act.
No, Indian law restricts an individual to being a member of only one OPC at a time.
In India, a 1-person company is an OPC, owned and run by one individual with limited liability. A 2-person company is a private limited company, requiring at least two directors and shareholders.
You’ll need a passport-size photo, PAN card, identity proof (Driving License / Passport / Aadhaar / Voter ID), address proof (bank statement / utility bill), registered office proof and an NOC from the property owner.
Yes, OPCs are fully legal under the Companies Act, 2013, for Indian citizens and residents. Only one OPC per person is allowed and nominees must also meet these criteria.
An OPC suits solo entrepreneurs with simpler compliance and full control. A Private Limited Company is better for larger ventures seeking external investment and scalability, though it demands stricter compliance.
An individual can only form one OPC. Previously, conversion was mandatory if paid-up capital exceeded ₹50 lakhs or turnover topped ₹2 crores, but this rule was removed in 2021.
