Everything You Should Know About OPC Registration in India in 2025

Everything You Should Know About OPC Registration in India in 2025


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A One Person Company (OPC) is a hybrid structure introduced under the Companies Act, 2013, allowing a single individual to own and manage a private limited company.

Description


Entrepreneurship in India is booming, and the government has streamlined various business structures to help solo founders formalize and grow. One such innovation is the One Person Company (OPC), a business model that combines the flexibility of a sole proprietorship with the advantages of a private limited company.

If you’re a solo entrepreneur in 2025, considering OPC formation, this complete guide on One Person Company Registration in India will walk you through its features, benefits, process, required documents, compliance requirements, and how it compares to LLPs, subsidiaries, and GST mandates.

What Is a One Person Company (OPC)?

A One Person Company (OPC) is a hybrid structure introduced under the Companies Act, 2013, allowing a single individual to own and manage a private limited company. It bridges the gap between a sole proprietorship and a company by providing limited liability and separate legal identity, all while requiring just one person to get started.

Who Can Register an OPC in India?

Not everyone is eligible to start an OPC Company Registration. Here are the key eligibility criteria:

  • Must be an Indian citizen
  • Must be a resident of India (staying at least 120 days in the last FY)
  • Should not be a member of more than one OPC
  • Only natural people (not companies or LLPs) can start an OPC

Advantages of OPC Registration in India

OPC is particularly beneficial for freelancers, solo founders, consultants, and startups. Here’s why:

  • Limited Liability: The personal assets of the owner are protected.
  • Separate Legal Entity: The company can own property, enter contracts, and sue or be sued in its name.
  • Single Ownership and Control: Easy decision-making with full control.
  • Tax Benefits: Access to tax deductions and lower corporate tax rates.
  • Easier Fundraising: Compared to sole proprietorships, OPCs enjoy better credibility with investors.

OPC vs Sole Proprietorship: Key Differences

Feature

OPC

Sole Proprietorship

Legal Identity

Separate legal entity

Not a separate entity

Liability

Limited

Unlimited personal liability

Compliance

Moderate

Minimal

Taxation

Corporate tax

Individual income tax

Ownership Transfer

Can be transferred

Cannot be transferred 

Process for OPC Registration in India (2025)

Here’s a breakdown of the OPC Registration process:

Step 1: Obtain DSC and DIN

  • Digital Signature Certificate (DSC) for signing documents online
  • Director Identification Number (DIN) for the proposed director

Step 2: Name Approval via RUN

  • Reserve a unique company name via RUN (Reserve Unique Name) facility on the MCA portal

Step 3: Draft MoA and AoA

  • Memorandum of Association (MoA)
  • Articles of Association (AoA)

Step 4: File SPICe+ Form

  • Use the integrated SPICe+ form to file for incorporation
  • Submit PAN, TAN, and GST details simultaneously

Step 5: Issue of Incorporation Certificate

  • Once verified, the Certificate of Incorporation will be issued by the Registrar of Companies (RoC)

Documents Required for OPC Company Registration

  • PAN card and Aadhar card of the director
  • Passport-size photo
  • Address proof (utility bill, bank statement)
  • Office address proof (rent agreement, NOC from the owner)
  • Nominee’s identity and address proof
  • MoA and AoA signed digitally

GST Registration for OPCs

Once you complete One Person Comany registration, the next crucial compliance step is GST Registration, especially if:

  • Your annual turnover exceeds ₹40 lakhs (₹20 lakhs for services)
  • You engage in inter-state trade
  • You sell goods or services on e-commerce platforms
  • You plan to list products on the Government e-Marketplace (GeM)

Benefits of Online GST Registration include:

  • Legal recognition for inter-state transactions
  • Access to Input Tax Credit (ITC)
  • Compliance with vendors, clients, and platforms

GeM Registration for OPCs

The Government e-Marketplace (GeM) allows businesses to supply products and services directly to government departments. OPCs can register as sellers by:

  • Submitting GSTIN, PAN, and incorporation documents
  • Uploading bank details and product/service listings
  • Maintaining compliance and quality standards

Selling on GeM expands opportunities for OPCs, especially those offering consultancy, IT services, or trading in agricultural or industrial goods.

LLP Registration vs OPC Registration

Often, founders consider whether LLP registration is more beneficial than OPC. Here’s a comparison:

Factor

OPC

LLP

No. of Members

Only 1

Minimum 2 partners

Liability

Limited

Limited

Tax Structure

Corporate tax

Individual slab or flat 30%

Conversion Flexibility

Easier to convert to Pvt Ltd

Can convert to Pvt Ltd

Annual Filing

Mandatory

Mandatory

For solo entrepreneurs, OPC registration in India offers more control, whereas LLPs are suitable for professional partnerships.

Can an OPC Have a Subsidiary Company?

Yes, once registered, an OPC can expand and establish subsidiary companies in India or abroad. The subsidiary:

  • Can be a private limited company or LLP
  • Must have a separate legal structure
  • Can receive capital or technology from the parent OPC

This is useful for entrepreneurs looking to scale while maintaining a parent-subsidiary relationship.

OPC Compliance Requirements Post-Registration

After successful OPC company registration, you must follow ongoing legal compliances:

  • Annual Return Filing: File with RoC every year.
  • Financial Statements: Submit audited accounts annually.
  • GST Returns: Monthly, quarterly, and annual GST filings (if applicable).
  • Income Tax Return: Corporate ITR filing is mandatory.
  • Board Meeting Records: Maintain proper meeting minutes and resolutions.

Who Should Register an OPC in 2025?

OPCs are ideal for:

  • Freelancers and consultants wanting to formalize their income
  • E-commerce entrepreneurs selling nationally
  • IT professionals or trainers working with multiple clients
  • Traders or service providers seeking GeM listing
  • Innovators and patent holders commercializing their IP

Conclusion: OPC—The Future of Solo Entrepreneurship in India

OPC Registration in India in 2025 offers the perfect legal structure for solo entrepreneurs who want to start small yet grow big. It blends credibility, scalability, and protection under one roof. With streamlined compliance, eligibility for GST, ease of listing on GeM, and options for future subsidiary company registration, OPC is your one-stop gateway to entrepreneurship.

So, whether you’re a freelancer, trader, or solo tech founder, OPC registration ensures your dream business gets the legal strength and recognition it deserves in India’s evolving economy.

Frequently Asked Questions

Q1. What is OPC registration?

Ans. OPC registration allows a single individual to form a private limited company with limited liability in India.

Q2. Who can register an OPC in India?

Ans. Only an Indian citizen who is a resident of India can register a One Person Company.

Q3. Is GST registration necessary for OPCs?

Ans. Yes, GST registration is mandatory for OPCs if their turnover exceeds the threshold or if they engage in interstate or online sales.

Q4. Can OPCs apply at the Government e-Marketplace (GeM)?

Ans. Yes, OPCs can register on GeM if they hold a valid GSTIN and meet the required compliance criteria.

Q5. What documents are required for OPC registration?

Ans. You need identity proof, address proof, registered office documents, and nominee details for OPC registration.

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