The One Person Company (OPC) is a unique concept introduced under the Companies Act, 2013, allowing a single individual to incorporate a company. Earlier, it was mandatory to have at least two members and two directors to form a private company, and three directors with seven members for a public company.

However, with the introduction of Section 2(62) of the Act, a One Person Company can be formed with just one director and one member, offering an ideal platform for solo entrepreneurs to operate as a corporate entity with minimal compliance compared to a Private Limited Company.

 

Key Benefits of an OPC

Here are some major advantages of registering as an OPC:

Single Owner Control: The entire business is managed by a single person, who acts as both the shareholder and director—ensuring focused decision-making.

Separate Legal Entity: The company has a distinct legal identity from its owner. It can own property, incur debts, and enter contracts independently.

Limited Liability: The liability of the owner is limited to their investment in the business. Personal assets are protected from business risks.

Easy Transition to Private Limited Company: An OPC can be easily converted into a Private or Public Limited Company, particularly when the business grows.

 

Mandatory Conversion Criteria:

Conversion of an OPC into a Private or Public Limited Company becomes mandatory if:

• The paid-up share capital exceeds ₹50 lakhs, or

• The annual turnover exceeds ₹2 crores (during the relevant financial year)

Upon reaching these thresholds, the OPC must convert and comply with applicable company law provisions.

 

Post-Registration Benefits & Services

After successfully registering an OPC, the following services are automatically availed through the SPICe+ form:

1. Director Identification Number (DIN)
2. Permanent Account Number (PAN)
3. Tax Deduction and Collection Account Number (TAN/TIN)
4. Employees’ Provident Fund Organization (EPFO) Registration
5. Employees’ State Insurance Corporation (ESIC) Registration
6. Professional Tax Registration (mandatory in Maharashtra)
7. Mandatory Bank Account Opening in the company’s name
8. GST Registration (if opted for)