HomeBusinessThe Advantages of Having One Person Company Registration

The Advantages of Having One Person Company Registration


A One person Company registration or OPC registration is a type of company registration which is done by a single person. This type of company is registered and managed by a single person. OPC registration has all the features of a company like separate legal status, perpetual succession and limited liability. The Companies Act of 2013 introduced the concept of One Person Company registration. Before the passing of Companies Act 2013, a single person could not register a company. If any individual wanted to start his/her business, they only had the option of sole proprietorship as there was a requirement of appointing minimum two directors and two members to establish a Private Limited Company. For a Public Company, the requirement was of a minimum of 3 Directors and a minimum of 7 Members.

But now after the introduction of Section 2(62) of the Company’s Act 2013, a company can be registered with just 1 Director and 1 member. The director and member both are the same person in a one person company. Thus, OPC company registration means a company registered, operated and owned by a single individual. A one person company registration has the features of a company and the benefits of a sole proprietorship. The compliance requirements are also relaxed and lesser for a one person company, compared to a private limited company. OPC Registration is quite suitable for small businesses. A one person company registration offers all the benefits of a Private Limited Company Registration. The OPC registration process is also similar to other company registrations and requires DSC, DIN and registration to be done with the MCA. 

Advantages of One Person Company Registration

Like other company registrations, OPC registration also has its own advantages and disadvantages. But for small business owners and other persons who are unable to do full fledged company registration, one person company registration is very beneficial. Here are some advantages of One person company registration: 

  • Unique Legal Status: The OPC registration  has a separate legal entity status. The single person who registered the OPC is safeguarded by its separate legal status. He cannot be personally held responsible for the company’s loss as his or her liability is limited to the value of the shares that he or she owns. Therefore, in case of losses only the OPC and not the director can be sued by the creditors.
  • Enhanced Access to Credit: With One person company registration in India it becomes easy to get funding from various sources like banks, angel investors, venture capitalists etc. Institutions prefer to provide loans to registered companies. But an OPC cannot raise funds from the public via issuing shares.
  • Limited Compliances: Under the Companies Act of 2013, One person company has been given some exemptions from compliance requirements. The OPC is exempted from preparing the cash flow statement. The secretary of the company is not required to sign any annual reports or account books. They can be signed by the director himself.
  • No Minimum Capital Requirement: There is no minimum paid up capital requirement for an OPC. The minimum authorized capital required for an OPC is rupees 1 lakh. 
  • Perpetual succession: A one person company also has the advantage of perpetual succession even if there is only one member. While registering his OPC, the owner/director needs to appoint a nominee. In any unfortunate scenario of his death, the nominee shall take over the company.
  • Easy Management: Managing an OPC is easier than other forms of company registration. Because everything is managed by a single person, taking decisions is straightforward, simple and  happens quickly. The member himself can  pass both ordinary and special resolutions. 


Q1. What is a one person company registration?

A one person company registration(OPC) is a type of company where a single individual can incorporate, manage and run a company all by himself.

Q2. When was OPC Registration introduced?

The Companies Act of 2013 introduced the concept of OPC Registration in India. 

Q3. Why was OPC Registration introduced?

OPC Registration was introduced to provide a service for individuals who want to start a company with minimum requirements and cannot register a Pvt Ltd company or Limited Liability Partnership Company Registration.

Q4. What are the features of a one person company?

One person company only has a single shareholder who is also the sole owner and director of the company. OPC has features like limited liability, perpetual succession etc. OPC is not required to appoint a minimum number of directors like other companies have to. 

Q5. Who is eligible for OPC?

A citizen of India and resident in India who is a natural person is eligible to form an OPC. A person cannot become a member of more than one One person company at the same time.

Q6. What are the documents required for OPC company registration?

The documents required for OPC company registration include: Identity and address proofs of the owner/director(s), Aadhar card of the Director, PAN card of the director, Address proof of the company’s registered office, Memorandum of Association (MOA) of the company, Articles of Association (AOA) of the company, NOC from the property owner of the registered office if it is a rented premises.

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