An OPC (one person company) is a private limited company with a single shareholder, allowed under section 2(62) of the Companies Act 2013. It gives a solo founder full corporate status — separate legal entity, limited liability, a CIN — without needing a co-founder. A nominee must be named to take over the shares if the member dies or becomes incapacitated.
Incorporation runs through the same SPICe+ route as any private company, with the nominee's consent filed alongside. Only a natural person who is an Indian citizen can incorporate an OPC, and one person can hold only one OPC at a time. Earlier caps forcing conversion to a private limited company once turnover crossed thresholds were removed in 2021 — an OPC can now grow, or convert voluntarily, at its own pace.
Compliance is a company's compliance, slightly softened: statutory audit is mandatory regardless of turnover, AOC-4 must be filed, and the annual return goes in the abridged MGT-7A. OPCs are exempt from holding an AGM, and a single director can pass resolutions by entering them in the minutes book. Income tax treats it as a normal company — flat corporate rates, with the concessional regimes available on the usual conditions.
Common mistake: choosing an OPC to "look bigger" when a proprietorship with Udyam registration would cost a fraction to run — audit fees and ROC filings apply even at nil revenue. The reverse mistake also happens: consultants staying proprietors when a client contract or liability exposure genuinely justifies the corporate shield.
Reviewed to the law in force in FY 2026-27. General information, not advice — confirm the position for your facts before acting.