One Person Company Registration in India: Everything You Need to Know

Deciding to start a business can be one of the most thrilling decisions in a person’s life, but let’s be real, it is also a little frightening! The sheer volume of legal documents, the business structure that is best to choose, and compliance can be overwhelming. If, like many growing entrepreneurs in India, you want to create a legitimate business without having a partner, there is one option for you: a One Person Company (OPC) Registration.
This article will explain what an OPC is, why it may be right for you, and how to register a One-Person Company step by step.
What Is a One Person Company or OPC?
A one-person company is defined in India through the Companies Act, 2013. Until the introduction of an OPC, if you wanted to incorporate a company, you needed two directors and two shareholders. This meant that, if you are a solo entrepreneur, your only option to start a legitimate business was a sole proprietorship. Sole proprietorships are easy to start, but do not provide credibility, scalability, or protection from liability.
An OPC helps you avoid losing out on the benefits of a private limited company. Now you can have the limited liability protection, legal status, and separate legal identity of a business without needing a partner.
Why Opt for OPC Instead of Sole Proprietorship?
Let's quickly compare the two. Suppose you run a graphic design practice on your laptop. As a sole proprietor, if a client sues you, or you incur debt, your assets – savings, home, even your cherished car – are at risk. With the OPC, however, your liability is limited to your investment in the company, and your assets would be protected.

That's just one reason why entrepreneurs are moving towards them. Here is a list of other advantages:

Better Credibility: People will view you as more professional when you are an OPC, including banks, vendors, and clients.