Introduction

A One Person Company (OPC) is a special type of company introduced under the Companies Act, 2013, that allows a single individual to own and manage a company with limited liability protection. It bridges the gap between a Sole Proprietorship and a Private Limited Company, providing corporate status to solo entrepreneurs who want credibility, scalability, and protection against personal risk.

An OPC is ideal for consultants, freelancers, and small business owners who operate alone but want to project a professional image and ensure business continuity.

Why You Should Register

Registering as an OPC offers several benefits over operating as a Sole Proprietorship:

• You get a separate legal identity from the owner.

• You enjoy limited liability, protecting your personal assets.

• The company can enter into contracts, own property, and sue or be sued in its own name.

• Banks, clients, and vendors view an OPC as more credible and professional.• Easy to raise loans or convert to a Private Limited Company later.

   
Compliance and Taxation

• An OPC must comply with the Companies Act, 2013, including annual filings with the Registrar of Companies (ROC).

• It must maintain proper books of accounts, hold annual audits, and file Income Tax Returns.

• Tax is levied at a flat 25% (for small companies) under the Income Tax Act, plus applicable surcharge and cess.

• GST registration is mandatory if turnover exceeds the prescribed limits or if interstate transactions are conducted.

• Director (the sole shareholder) must also obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN).
 

Other Registrations Required

When You Should Convert

You should consider converting your OPC to a Private Limited Company when:

• Your paid-up capital exceeds ₹50 lakh or annual turnover crosses ₹2 crore.

• You plan to add more shareholders or attract investors.

• You want to issue equity shares and expand your business.