One Person Company Archives

What are the Recent Developments of the OPC in India? Introduction ecent Developments of OPC have significantly transformed the landscape for One Person Companies in India since their introduction under the Companies Act, 2013. Aimed at empowering solo entrepreneurs with the benefits of limited liability and a corporate structure, the Government has implemented key reforms particularly in 2021 and 2023 to make OPCs more flexible, inclusive, and growth-friendly. These changes align with the evolving needs of modern entrepreneurs and promote greater participation in India’s formal business sector. Legal Recognition and Amendment Highlights Section 2(62) of the Companies Act legally defines OPCs. OPCs must be registered by a natural person (not an entity like a company or LLP). Initially, only resident Indian citizens were eligible. Post-2021 reforms allow Non-Resident Indians (NRIs) to form OPCs. Mandatory conversion to a private limited company upon crossing capital/turnover thresholds was eliminated in 2021, allowing continued OPC status regardless of size. Recent Developments of OPCs in India (2021–2023) NRIs Allowed to Form OPCs (2021): NRIs can now form OPCs. The residency requirement was reduced from 182 to 120 days, encouraging overseas Indian entrepreneurs to invest in India. Removal of Mandatory Conversion (2021): OPCs can now exceed capital or turnover thresholds without being forced to convert into another company type. Simplification of Incorporation and Conversion (2023): Fewer documents are required. Form INC-5 was removed, and INC-6 was simplified, easing the registration process. Nominee Requirement in Memorandum (2023 Update): The nominee's name and consent must be included in the MOA. Form INC-3 must be submitted during incorporation. No Objection Certificate (NOC) for Conversions (2023): NOC is now required from creditors when converting a private company to OPC, enhancing creditor protection. Audit Trail Mandate (2023): All companies, including OPCs, must use accounting software with an audit trail feature to ensure financial transparency and fraud prevention. Why These Reforms Matter? The Government of India has recognized that: Solo entrepreneurs and startups are key to job creation and innovation. Previous structures imposed unnecessary compliance burdens on small-scale founders. By easing regulations, more individuals can now start businesses and participate in the formal economy. We provide reliable Company Annual Filing and OPC Annual Compliances services, ensuring timely and accurate legal submissions to keep your business fully compliant. Procedures for Incorporating and Managing an OPC Incorporation Process Digital Signature Certificate (DSC): Obtain a DSC for the proposed director. Director Identification Number (DIN): Apply for a DIN through the SPICe+ form. Name Reservation: Reserve the company name using the RUN service or SPICe+ Part A. Filing SPICe+ Form: Submit the SPICe+ form with all necessary documents, including nominee details. Certificate of Incorporation: After approval, you receive the Certificate of Incorporation along with PAN and TAN. Post-Incorporation Compliance Annual Filings: OPCs must file annual returns and financial statements with the Registrar. Auditing: Required if turnover exceeds ₹2 crore or paid-up capital exceeds ₹50 lakh. Board Meetings: OPCs are exempt from holding AGMs but must adhere to other board meeting norms. Who Benefits the Most from These Changes? Freelancers and consultants seeking limited liability protection NRIs wanting to establish businesses in India without needing local partners Startup founders testing new ideas solo before scaling up Digital entrepreneurs who don’t need a full corporate team at the outset Government Incentives for OPCs Sr No Incentive Brief Explanation 1 Tax Benefits Startups registered as OPCs can avail a 3-year tax holiday under Startup India. 2 No Minimum Capital Requirement You can start with as little as ₹1 as capital. 3 Less Compliance Burden Fewer filings and exemption from annual general meetings. 4 Startup India Recognition Recognized OPCs can access funding and government startup schemes. When Should an OPC Consider Converting? You need external investors or venture capital. You want to bring in co-founders or equity partners. You plan to expand internationally or diversify ownership. Additional Challenges Faced by OPCs Limited Investor Interest: Venture capitalists usually prefer private limited companies with multiple shareholders. Nominee Process Can Be Tricky: Formalities around appointing and changing nominees can be time-consuming. Misconceptions About OPC Credibility: Some clients or partners may perceive OPCs as less professional, impacting deals. Conclusion Recent developments of OPC have made them especially beneficial in today’s digital and startup economy, where solo founders are common. With fewer regulatory barriers and increased autonomy, OPCs are now a viable and attractive option for aspiring entrepreneurs. However, it's essential for founders to plan ahead. While OPCs are perfect for starting small, if your business grows in complexity, ownership, or capital needs, you can always transition to a larger corporate structure. Suggested Read : AGM Provisions for OPC Form MGT 7A for OPC Mandatory Compliance List for OPC OPC Turnover Limit for Small Businesses Nil return for small business FAQs Yes. Since 2021, NRIs can form OPCs after meeting a 120-day residency requirement in a financial year. No. As per the 2021 amendment, there’s no mandatory conversion based on capital or turnover limits. A nominee takes over the company in case of the sole member's death or incapacity, ensuring smooth succession. It protects the rights of creditors during conversion and ensures financial responsibility by the company. Yes. As of April 2023, all companies, including OPCs, must maintain audit trails in accounting software for better transparency.

For Indian Entrepreneur

For Foreign Entrepreneur

Special Entities

Tax Registrations

Other Registration

Returns

Annual Filings

Change Services

Closure

Legal Drafting

Special

Trademark

Copyright

Patent

Designing & Marketing

Blog

Recent Development of the OPC in India

Benefits of OPC (One Person Company) in India

Hi, Welcome to EbizFiling!

HOME

POLICY

RELATED LINKS

CONNECT WITH US

TOP 3 READS

Annual Compliance Calendar of LLP 2025-26

Role of IEC in International Trade: Future Trends

LLC vs INC : Difference between LLC and INC

Secure Payment Modes

GSTR 9 Annual Return Filing
Certificate of Good Standing in USA
Share Certificate Printing
Form 10F of Income Tax
Tax Residency Certificate (TRC) for US Entity
Tax Residency Certificate (TRC) for Indian Entity
Company Registration in Ontario, Canada
FSSAI Licence Modification
FSSAI License Renewal
Private Limited Company
US payroll services in India
UK Business Outsourcing Process in India
File CRF Form to change Master Data on MCA
Reply to Notice Under Section 148 of Income Tax Act
Reply to Notice u/s 143(2) of Income Tax Act for Scrutiny Assessment
Reply to Intimation Notice under section 245 of Incone Tax Act
Reply to Defective Notice u/s 139(9) of Income Tax Act
Reply to Income Tax Notice u/s 143(1)(A) for Prima Facie Adjustment
Reply to intimation notice of Section 143(1) of Income Tax Act
Reply to Income Tax Notice Under Section 133(6)
Corporate Legal Advice
LEI Code Registration
Employee Background Verification
US Business Solutions and Outsourcing Services in India
LLC Annual Compliances in Wyoming, USA
LLC Annual Compliances in Florida, USA
E-RCMC Registration under EPCES in India
Annual Filing & Bookkeeping & Accounting Service for Partnership Firm
ITIN Registration in the USA
Offshore Staffing Services in India
SEO Services in India
Content Writing Services in India
File Form 10BD Online under Income Tax Act
Annual Filing For Trust in India
Register a company in India from UK
Register a company in India from Germany
Register a company in India from France
Register a company in India from US
LLC Annual Compliances in Delaware, USA
Register a company in India from Canada
Register a company in India from UAE
Register a company in India from Singapore
Register a company in India from Australia
Company Registration in Indiana
Company Registration in California
Company Registration in New Mexico
Company Registration in New York
Company Registration in Texas
Company Registration in Wyoming, USA
Register Company in Florida, USA
Company Registration in Delaware
Annual Filing & Book-keeping & Accounting Service for Proprietorship Firm
Wall Designing
Virtual Office in India
Form 15CA Online Filing – Income Tax
NGO Darpan Registration
Overseas Direct Investment (ODI) through Automatic and Approval Route
HR Hiring and Recruitment Services in India
FLA Return Filing Online to RBI in India
APEDA (RCMC) Registration in India
ROC Annual Compliance for Producer Company
ROC Annual filing for Section 8 Company
ROC Annual filing for Public Limited Company
FCRA Registration Online in India
File Form CSR 1 online
Appeal to CIT- File an Appeal to Commissioner to Income Tax
Reply to Scrutiny Assessment Notice u/s 143(3)
Reply to Income Tax Notice- Know How to Respond to IT Notices
Surrender IEC License Online in India
भारत में कंपनी पंजीकरण / रजिस्ट्रेशन
Drop-Shipping Business in India by Foreigners
OPC Registration in India by an NRI
Company Registration in India- Know how to open a Company in India
Creation of Charge
LLP Registration in India by an NRI
Company Registration in India by an NRI
Right Issue of shares / Right Offerings
Renewal of IEC License
Application for the Extension of Name Reservation
Digital Marketing Services
Company Annual Filings in XBRL filing mode in India
12AA & 12A Registration Process
Trademark Registration / Brand Registration in the USA
Trademark Registration / Brand Registration in UK
Trademark Registration / Brand Registration in Malaysia
Strike Off Company
Payment of TDS return on purchase of property (form 26QB)
Business Advisory Services
Limited Liability Partnership Registration in Mumbai
Limited Liability Partnership
File ROC Form DPT 3 Return of Deposits
Income Tax Returns Filing
ROC Annual Compliance for Pvt Ltd Company
MCA Companies Fresh Start Scheme
LLP Annual Return Filing
MCA LLP Settlement Scheme 2020 (LSS 2020)
DIR 3 E KYC
ISO Certification in India
Run your operations / company in India without any liabilities
Add A Director
Accounting and Compliance Services for Start ups, Small companies, LLP and OPC (Micro Retainership Services)
Foreign Direct Investment through Automatic and Direct Route
Company registration in Bangalore
Apply for FSSAI license or Food license in India
Dormant Company Status Application
Trademark Registration in India
Conversion From Registered Partnership To LLP
Conversion From Registered Partnership To Private Limited Company
Change in Registered Office of LLP
Company Registration in USA
Company Registration in Malaysia
Company Registration in UK
Logo Design Services
Conversion of Private Limited Company to OPC
Opening a Branch in India by a Foreign Company
Nidhi Company Annual Filing
One Person Company (OPC) Registration in Mumbai
IEC Registration in Mumbai
Trademark Registration in Mumbai
Private Limited Company registration in Mumbai
Form GSTR 1
Maharashtra Professional Tax
Premium Retainership Services in India
MicroFinance Company registration
Conversion of Section 8 Company to Private Limited Company
DPIIT Startup Recognition certificate
RBI Form FC-GPR
Charge Registration on property
RBI Form FC-TRS
EPF Registration
PAN Application
Digital Signature
IEC Registration
TAN Application
DIN Application
GST Registration
Nidhi Company
Producer Company
Hindu Undivided Family (HUF), HUF Deed
Sole Proprietorship Firm Registration
Public Limited Company
E-Commerce Business
One Person Company (OPC)
Partnership
Indian Subsidiary
Non Profit Organization
GST Returns
CMA Report Preparation
E-Form Commencement of business certificate(form-20a)
Private Limited Company Registration
Startup Advisory Services
One Person Company (OPC)
Private Limited Company Registration
Income tax section 80g(5) registration
Company Registration Process in India for Foreigner- Know How to Open a Company in India
Secretarial Compliance Services
Search Report ROC
Revival of Struck Off Company
Trademark Watch Services
One Person Company (OPC)
Limited Liability Partnership
GSTR 9C filing by CA- GST Annual Audit due date, GSTR 9C FAQs
Tax Consultancy Services
International Trademark Registration Under Madrid Protocol
Surrender of DIN
Trademark Registration Process
LLP Registration Procedure – copy
LLP Registration Procedure – copy
Online LLP Registration and Complete Procedure
Aadhaar Udyog Online Registration
New Form INC-22A
FIND GST RATE, HSN CODE & SAC CODE
Company Registration in India
Hire Purchase
Contract Manufacturing Agreement
Web Development Agreement
Sole Selling Agreement
Underwriting Agreement
Mortgage Deed
Agreement Appointing A Common Arbitrator
Deed of Wakf-Alal-Aulad
Specific Power of Attorney
Foreign Collaboration Agreement Drafting
Joint Venture Agreement
Non- Disclosure Agreement
Franchise Agreement
Agreement to Sell Business
Vendor’s Agreement
Exclusive Distributorship Agreement
Shareholders Agreement
Consumer Complaint Letter
Power of Attorney
Company Name Change
Appointment of Auditors
Removal/Resignation of Director
GST Cancellation
GST LUT Letter of Undertaking
Conversion from Private Limited Company to Limited Liability Partnership (LLP)
Business Plan Preparation (Project Report)
Book-Keeping & Accounting
Trademark Renewal
Trademark Opposition
Trademark Rectification
Trademark Withdrawal in India
Payroll Setup & Processing
ESI Returns
PF Returns
TDS Returns Revision
Removal of Charge
Modification of Charge
MOA/AOA Printing
MOA/AOA Amendment
IEC Modification
Change of Registered Office Address
OPC to Private Limited Company
Conversion of Sole Proprietorship to OPC
Sole Proprietorship to Partnership firm
Conversion from Proprietorship to LLP
Conversion of Proprietorship to Private Limited Company
Conversion of Public Limited Company to Private Limited Company
Private Limited Company to Public Limited
Conversion of Partnership to Private Limited Company
Conversion of LLP to Private Limited Company
Conversion of Partnership to LLP (Limited Liability partnership)
Del Credere Agreement
Lease deed
TDS Returns
Strike Off OPC
Dissolution of Firms
Strike Off LLP
ESIC Registration
GST Modification
OPC Annual Filing
SSI/MSME/Udyog Aadhar Registration
Share Transfer & Transmission
Change in DIN
Add/Remove a Partner in LLP
LLP Name Change
Change in LLP Agreement
Increase in Authorized Capital
Change in Directorship
Patent Registration
Patent Search
Provisional Patent
Copyright Application
Trademark Assignment
Trademark Objections
Trademark Registration
Trademark Registration – copy
Limited Liability Partnership
Conversion into LLP