OPC Registration in Delhi

An OPC is a business entity owned and managed by a single individual as its sole member and shareholder. It combines the flexibility of a proprietorship with the legal benefits of a company. The owner has limited liability, meaning personal assets remain safe if the business faces financial risks. An OPC is a type of private company under the Companies Act, 2013.

Under Section 2(62) of the Companies Act, 2013, only Indian residents were initially allowed to incorporate an OPC. However, after the 2021 amendments, this restriction was relaxed. Now, even Non-Resident Indians (NRIs) can incorporate an OPC in India, provided they have stayed in India for at least 120 days during the previous financial year.

Other key changes introduced in 2021 include:

• Removal of conversion thresholds: Earlier, OPCs had to convert into a private or public company if their paid-up share capital exceeded ₹50 lakhs or turnover crossed ₹2 crore. These limits have now been removed.
• No waiting period for voluntary conversion: The earlier requirement of a two-year waiting period before voluntary conversion has also been eliminated.

These changes aim to simplify compliance and encourage more entrepreneurs, including NRIs, to set up OPCs in India.

Delhi has become a hotspot for entrepreneurship, with over 14,734 DPIIT-registered startups and several active ventures, as noted by PIB. Its strong infrastructure, large consumer base, and pro-startup environment make it an ideal place for setting up an OPC.

1. Business Opportunities in Delhi

Delhi offers a unique mix of traditional trade and modern industries:

• Wholesale & Retail: Asia’s biggest markets like Chandni Chowk, Karol Bagh, and Sadar Bazaar.
• Emerging Sectors: IT, fintech, healthcare, education, logistics, and digital marketing.
• Success Stories: Popular ventures such as Zomato, PolicyBazaar, BharatPe, and Urban Company began in Delhi-NCR, showing the region’s strong ecosystem for business growth.

This blend of traditional markets and new-age industries opens diverse opportunities for OPC owners to establish and scale their ventures.

2. Compliance for OPCs in Delhi

All OPCs in Delhi come under the jurisdiction of the Registrar of Companies (ROC), NCT of Delhi & Haryana.

Key forms include:

• SPICe+ for incorporation

• INC-22 for registered office address
• MGT-7A for annual returns

Additionally, Delhi offers simplified single-window clearances and startup-friendly initiatives like the Delhi Startup Policy 2022.

3. Local Business Ecosystem

Delhi has a strong entrepreneurial ecosystem supported by incubators, investors, and events:

• Funding Networks: Indian Angel Network, Venture Catalysts, and Delhi Angels.
• Incubators & Accelerators: Atal Incubation Centres, Startup India Seed Fund, and state-supported incubation hubs.
• Events & Exhibitions: TiE Delhi-NCR Summit, Delhi Trade Fair, and startup bootcamps that connect founders to global buyers and investors.

Starting an OPC in Delhi gives you access to unique advantages that directly support growth:

• Separate Legal Entity: An OPC is legally distinct from its owner, ensuring that personal assets and savings remain protected. The owner’s liability is strictly limited to the extent of shares held, providing strong financial security even if the business faces risks.
• Credibility with Financial Institutions: A registered OPC becomes eligible for business loans, credit facilities, and government-backed schemes such as the Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE). It makes it easier to secure financial support.
• Quick Decision-Making: As the sole director and shareholder, you can make decisions without delays caused by board approvals.
• Access to Government Schemes: Delhi-based OPCs can use Startup India tax benefits, MSME schemes, and incentives under the Delhi Startup Policy 2022. It provides seed funding, lease rental subsidies, and mentoring.
• Proximity to Investors & Institutions: Being in the capital, you are closer to venture capital firms, angel investors, government ministries, and international organizations. Delhi’s financial ecosystem provides strong access to policy-making institutions, regulatory authorities, and active investor networks.
• Affordable Workspaces & Infrastructure: Co-working spaces in Connaught Place, Nehru Place, Okhla, and Gurgaon (Delhi-NCR) offer flexible, cost-effective setups compared to Mumbai or Bengaluru.
• Export & Logistics Advantage: With IGI Airport and Delhi’s inland container depots, OPCs can register as Export Houses and easily ship products worldwide. OPCs can obtain an Import Export Code (IEC) from DGFT to engage in exports, offering a clear compliance advantage.
• Sector-Specific Growth:
  • Hospitality & Tourism: Delhi attracts millions of domestic and foreign tourists every year.
  • Education & EdTech: As home to DU, JNU, and AIIMS, Delhi is an education hub supporting thousands of edtech ventures.
  • Healthcare & Pharma: With top hospitals like Fortis, Apollo, and Max, OPCs in health tech and pharma services have massive opportunities.
• Tax Advantage: In India, OPCs are taxed at a flat rate of 22% (plus surcharge and cess), similar to private limited companies. This structure can often be more advantageous compared to individual tax rates under a proprietorship.
• Business Continuity: With a nominee director, operations continue even if the primary member is unable to manage the company.

Registering a One Person Company (OPC) in Delhi requires compliance with the Companies Act, 2013. These conditions ensure that only suitable individuals can set up an OPC while maintaining proper legal standards. Here are the criteria:

• Single Member Structure: An OPC can be formed by just one individual who acts as both shareholder and director.
• Nominee Appointment: A nominee must be appointed at the time of incorporation. This nominee will step in if the sole member is unable to continue managing the company.
• One OPC Rule: A person can register only one OPC and cannot serve as a nominee in more than one company at a time.
• No Minimum Capital Requirement: There is no mandatory paid-up capital needed for forming an OPC in Delhi.
• Restricted Activities: OPCs are not permitted to carry out banking, NBFC operations, investment in securities, or function as Section 8 (non-profit) companies.
• Registered Office in Delhi: The company must have a registered office address within Delhi (or NCR jurisdiction under Delhi ROC) for official communication with the Registrar of Companies.
• Only Natural Persons Allowed: An OPC can only be incorporated by an individual (natural person). Other entities, like companies, LLPs, or trusts, cannot form an OPC.
• Minimum Age Requirement: The sole member must be at least 18 years old. Minors are not allowed to incorporate or act as nominees.

If you are planning to start your own business as a single owner, registering a One Person Company (OPC) is one of the best ways to begin. The process is completely online and can be completed by following a few simple steps.

Step 1: Apply for DSC and DIN

Both a Digital Signature Certificate (DSC) and a Director Identification Number (DIN) are mandatory for online registration.

• DSC: Obtain from authorized certifying agencies for digitally signing documents.
• DIN: Apply through the MCA portal while filing the SPICe+ (INC-32) form.

Step 2: Choose and Reserve a Company Name

Your company name must be unique and comply with the Companies Act, 2013.

• Check availability: Use the MCA portal to search for name availability.
• Reserve name: Use the RUN (Reserve Unique Name) service or directly apply through SPICe+.

You can also use our company name checker tool to verify the availability of your chosen name.

Step 3: Draft MOA and AOA

Two key legal documents are required for incorporation:

• Memorandum of Association (MOA): Defines the main business objectives, scope of activities, and powers of the company. MOA reflects the company’s relationship with the outside world.
• Articles of Association (AOA): Specifies the internal rules, governance framework, and management of the company. AOA also covers decision-making, director powers, and shareholder rights.

Step 4: Appoint a Nominee

As an OPC can have only one director/shareholder, it is mandatory under Section 3(1)(c) of the Companies Act, 2013, to appoint a nominee who will step in if the sole member dies or becomes incapacitated.

• File Form INC-3 with nominee consent and KYC documents.

Step 5: File the Incorporation Forms

Once the name is approved, proceed with Form SPICe+ (INC-32) for OPC incorporation:

• Attachments required: DSC, DIN, MOA, AOA, proof of registered office, ID, and address proof of the director and nominee.
• Pay fees: Includes filing fees and stamp duty (calculated based on authorized share capital and state rules).

Step 6: Get the Certificate of Incorporation

After approval, the ROC issues the Certificate of Incorporation (COI), which includes the company’s Corporate Identity Number (CIN).

• The company’s PAN and TAN are usually allotted automatically upon incorporation.
• COI also provides legal recognition and confirms the company’s separate legal status.

Step 7: Open a Bank Account

With the incorporation certificate and PAN, open a current bank account in the name of the OPC. This account will be used for all business transactions.

By completing these steps, you can successfully register your One Person Company online and start your business journey with confidence.

When applying for OPC registration in Delhi (or anywhere in India), certain documents are required for the member/director, nominee, and registered office. Preparing these in advance helps in completing the process smoothly.

The cost of registering a One Person Company (OPC) in Delhi depends on the authorized capital, government charges, and professional service fees.

Below is a clear breakdown of the typical costs involved in OPC registration in Delhi.

These are the standard costs for OPC registration in Delhi. The final amount may vary depending on the company’s authorized capital and the level of professional support chosen.

After registering a One Person Company (OPC) in Delhi, certain legal and tax compliances must be followed to keep the company active and avoid penalties. Here’s the list of mandatory compliance requirements:

• Board Meetings: An OPC must hold at least two board meetings in a year, with a gap of 90 days between them. However, as per Section 173(5) of the Companies Act, 2013, if the OPC has only one director, no board meetings are required.
• Registered Office: The OPC must have a valid registered office in Delhi. A legally approved virtual office may also be used for communication and record-keeping.
• Appointment of Auditor: A statutory auditor must be appointed within 30 days of incorporation. Annual accounts of the company must be audited, even if business activity is minimal.
• Annual Filings with ROC:
  • Form AOC-4: Filing of financial statements.
  • Form MGT-7A: Filing of annual return.
• Director KYC: The director must file DIR-3 KYC every year to keep the DIN (Director Identification Number) active.
• Income Tax Return: OPCs must file ITR-6 annually, irrespective of turnover. TDS deductions and filings should also be done on time, if applicable.
• GST Compliance: If the turnover exceeds the prescribed limit (₹40 lakh for goods, ₹20 lakh for services in Delhi), GST registration becomes mandatory. Once registered, timely GST return filing is compulsory.