One Person Company (OPC) Registration: A Solo Entrepreneur's Gateway to Business Legitimacy

The days of needing a collective of people to form a company are over. There are no more partner or investor pitches. With the advent of the One-Person Company (OPC)Registration structure in India, legislated under the Companies Act, 2013, individual entrepreneurs can now call the shots without needing a cabinet to provide strategic oversight.

Whether you are a freelancer, solopreneur, or small business operator capable of employing your name, OPC could serve as a level of separation between your work and the officially established business entity.

Let's find out more about OPC registration and why this could be a solution, and a game-changer, for your activity.

What is a One Person Company?
As the name suggests, a one-person company (OPC) is a private limited company that can be created with just one person. Although a sole proprietor is not considered a separate legal identity from the person who owns it, an OPC is considered a separate legal entity. Thus, the entity known as the 'OPC' is seen as different from the individual who owns and runs it.

In simple terms, your assets are protected in the event your business fails.
This form works best for individual entrepreneurs who want the credibility, limited liability, and access to funding that come from being a private limited company, but who do not have any co-founders or partners.

Who is permitted to register an OPC?
Not everyone can register an OPC in India. The guidelines are clear:

• An OPC can be registered by only a natural person who is an Indian citizen and is resident in India.
• One person cannot be a member of more than one OPC at a time.
• An OPC can have only one director and only one shareholder, but it may be the same person.
• You must also have a nominee—whoever that person is, they will take over your company when you become incapacitated or when you die.

Step-by-Step OPC Registration Process
Let’s break it down so it doesn’t sound like a mountain of legal information.