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One Person Company is a new concept that has been introduced with the Company's Act 2013. Before the enforcement of the Companies Act 2013 a single person was not able to establish a company. An OPC has characteristics of a private Company and the benefits of the sole proprietorship. Earlier if a person had to establish a business, then he or she should only opt for a sole proprietorship.

According to Section 2 (62) of the Company's Act 2013, a company can be established with only one director and one member. Registering a OPC in India is a type of company with lower compliance requirements than a Private company.

A One Person Company Registration in India can be obtained under the Companies Act 2013 with just one single member and one Director. The Director and member can also be the same person. Here an individual who may be a resident or Non-resident Indian can register an OPC in India.

 The most important aspect of One Person Company is that it is incorporated as a company under the companies act. The separate legal entity status gives one person company the special advantage of limited liability. The liability of the member of the  OPC limited to  the shares held by them, so the creditors of the company can only sue the OPC and not the member or director.

Company form of business always have an image of legal status in the eyes of the public. Since OPC is a private company, it is easy to go for fundraising through venture capitals, angel investors, incubators, crowd funding etc. The Banks and the Financial Institutions prefer to grant loans to a company rather than a proprietorship firm. Thus, it becomes easy to obtain funds either from financial institutions or from outside.

There is no requirement of company secretary signature on various compliances for a one person company. There are lesser number of compliances for a one person company when we compare with other form of organisations. The annual returns  and books of accounts need to be signed by only director.

Incorporation of one person company is comparatively easy.  The member can be director also. At present there is no capital requirement for incorporating a one person company.

It is as good as a sole proprietor ship the management of an OPC is easy. Since a single person can establish and run the OPC, it becomes easy to manage its affairs. It is easy to make decisions, and the decision-making process is quick as well the execution. The ordinary and special resolutions can be passed by the member easily by entering them into the minute book and signed by the sole member. 

The OPC has the feature of perpetual succession even when there is only one member. While incorporating the OPC, the single-member needs to appoint a nominee. Upon the member’s death, the nominee will run the company in the member’s place. So the one person company is as good as other type of companies, and can survive even if all the members are no more.

1. Every director and subscriber members shall have a Digital Signature Certificate (DSC).
2. OPC must have either “(OPC) Private Limited" as the last word in its name. 

The first step is to obtain the Digital Signature Certificate of the proposed Director(s) and subscriber of the One Person Company. The reason for this is that all the forms need to be submitted online and require the director and subscriber of Memorandum of the OPC. Following information/documents are required for application of DSC:

i. Aadhaar Card

ii. PAN Card

iii. Photograph

iv. Email address

v. Mobile Number

The next step while incorporating an OPC is to decide on the name of the Company. The name of the Company will be in the form of “ABC (OPC) Private Limited”.

The name can be approved in the Form SPICe+ 32 application. Only one preferred name along with the significance of keeping that name can be given in the Form SPICe+ 32 application. If the name gets rejected, another name can be submitted by applying another Form SPICe+ 32 application.  

Once the name is approved by the MCA we move on to the next step. 

We have to prepare the following documents which are required to be submitted to the ROC:

The Memorandum of Association (MOA) which are the objects to be followed by the Company or stating the business for which the company is going to be incorporated.

The Articles of the Association (AOA) lays down the by-laws on which the company will operate.

Since there are only 1 Director and a member, a nominee on behalf of such a person has to be appointed because in case he becomes incapacitated or dies and cannot perform his duties the nominee will perform on behalf of the director and take his place. His consent in Form INC – 3 will be taken along with his PAN card and Aadhar Card.

Proof of the proposed company's registered office as well as proof of ownership and NOC from the owner.

Declaration and Consent of the proposed Director of Form INC -9 and DIR – 2 respectively.

A declaration by the professional certifying that all compliances have been made. 

​ The SPICe Form, SPICe-MOA and SPICe-AOA along with the digital signatures of the Director and the professional (CA/CS/CWA) will be uploaded to the MCA site for approval. The PAN and TAN is generated automatically at the time of incorporation of the Company. 

On verification, the Registrar of Companies (ROC) will issue a Certificate of Incorporation and simultaneously PAN, TAN, ESI and EPF registration will be done for the Company. 

1. Identity Proof such as Aadhaar Card, Driving License, Voter ID of all the directors and shareholders. 
2. Address Proof of all the proposed directors and shareholder of the company such as Electricity Bill/ Telephone Bill / Bank Account Statement.
3. PAN card details of all the directors and shareholder.
4. Utility bill such as telephone, gas, water or electricity bill and rent agreement of the registered office as a residential proof of the business place. It should not be older than 2 months. 
5. An NOC or No Objection Certificate from the landlord of the business place.
6. Digital Signature Certificate of the directors.
7. Email ID and Mobile no. of directors and shareholders of the company.
8. Passport size photograph of the directors and shareholders.

Note: In case of NRI or Foreign National, documents of Subscribers of Memorandum and Directors must be notarized or apostilled.