What Can A One Person Company Be Registered As? Know the Different Types!

Are you an entrepreneur looking to start your own business while maintaining complete control? Have you ever wondered, “One person company can be registered as?” If you’re a solo business owner who wants the benefits of a corporate structure, One Person Company (OPC) is the ideal option for you.

The concept of a One Person Company was introduced under the Companies Act, 2013, allowing individuals to operate a company with a separate legal entity while enjoying limited liability. But how does an OPC function? What are the one person company features that make it unique? How does the registration process work? And what are some real-world one person company examples?

In this blog, we’ll provide an in-depth understanding of how one person company can be registered as, the benefits of one person company, legal provisions, case precedents, and everything else you need to know to make an informed decision.

What is a One Person Company?

A One Person Company (OPC) is a form of business entity in which a single individual can register and operate a company without requiring a partner or additional shareholders. Unlike a sole proprietorship, an OPC has a separate legal identity, meaning that the owner is not personally liable for business losses beyond the investment made.

Key Features of One Person Company

To understand the benefits of one person company, it is essential to examine its key features:

1. Single Ownership & Control

• Unlike private limited or public limited companies that require multiple shareholders, an OPC is owned and managed by a single individual.
• The sole owner can make all business decisions without interference from partners or shareholders.

2. Limited Liability Protection

• One of the most significant benefits of a one person company is the limited liability feature. The owner’s liability is limited to the investment made in the business.
• In case of financial losses or legal disputes, personal assets of the owner remain protected.

3. Separate Legal Entity

• An OPC is a distinct legal entity from its owner. It can own assets, enter into contracts, and file lawsuits in its own name.
• The company’s existence is not affected by the owner’s financial condition.

4. Perpetual Succession

• Unlike a sole proprietorship, an OPC enjoys perpetual succession, meaning the company continues to exist even after the owner’s demise.
• A nominee, designated at the time of incorporation, takes over the company.

5. Lower Compliance Burden

• Compared to private limited companies, OPCs require fewer legal and financial compliances, making them an excellent choice for small businesses and startups.

6. No Minimum Capital Requirement

• There is no mandatory minimum capital required to register an OPC. You can start with a capital of as low as ₹1.

How can a One Person Company Can Be Registered As?

Thinking how one person company can be registered as a private limited company with a single shareholder.

According to Section 2(62) of the Companies Act, 2013, an OPC is considered a private company with limited liability, which means it enjoys the same benefits as a private limited company but with the advantage of a single-owner structure.

Legal Provisions for One Person Company

As per the Companies Act, 2013, an OPC must fulfill the following conditions:

• The company must have only one shareholder.
• The owner must be an Indian citizen and resident (i.e., residing in India for at least 182 days in a financial year).
• A nominee must be appointed in case of the owner’s incapacitation or death.
• An OPC cannot engage in financial or investment activities, such as non-banking financial services (NBFCs).
• If the annual turnover of the OPC exceeds ₹2 crore, or its paid-up capital crosses ₹50 lakh, the company must be converted into a private limited company.

For reference, you can check the Ministry of Corporate Affairs (MCA) guidelines on OPC registration.

How to Register a One Person Company in India?

Want your one person company can be registered as a private limited company, as discussed above, the registration process for a One Person Company involves multiple legal steps to ensure compliance with government regulations. Here’s a step-by-step guide:

Step 1: Obtain a Digital Signature Certificate (DSC)

• The registration process is entirely online; hence, the sole owner must obtain a Digital Signature Certificate (DSC) from a government-authorized certifying agency.

Step 2: Apply for Director Identification Number (DIN)

• The Director Identification Number (DIN) is a unique number assigned to an individual who intends to become a company director.
• You can apply for DIN through the SPICe+ Form available on the MCA website.

Step 3: Name Approval via RUN Form

• The Reserve Unique Name (RUN) Form must be submitted to the Ministry of Corporate Affairs to approve the company name.
• The name must end with “(OPC) Private Limited.”

Step 4: Draft and File Incorporation Documents

• The Memorandum of Association (MOA) and blogs of Association (AOA) must be prepared.
• The SPICe+ Form must be submitted along with MOA, AOA, and other essential documents.

Step 5: Nominee Declaration (Form INC-3)

• A nominee must be appointed using Form INC-3.

Step 6: Issuance of Certificate of Incorporation

• Upon verification, the Registrar of Companies (RoC) will issue a Certificate of Incorporation, officially registering the OPC.

This is how a one person company can be registered as a private company if you follow the steps we at RegisterKaro would help you go through this process easily.

Exploring the Varied Options in Which a One Person Company Can Be Registered As:

One Person Company (OPC) is a highly versatile business structure in India that allows a single entrepreneur to enjoy the benefits of a corporate entity. One person company can be registered as different types of businesses, depending on the industry, legal requirements, and long-term goals. Here’s a detailed breakdown of various ways a One Person Company can be registered as in India.

1. One Person Company Can Be Registered as a Private Limited Company

Under Section 2(62) of the Companies Act, 2013, one person company can be registered as a private limited company with a single owner. 

However, unlike a traditional Private Limited Company, which requires at least two shareholders, an OPC allows a single person to own and operate the business while enjoying limited liability protection. This makes it a great option for entrepreneurs, freelancers, and small business owners who want to operate a legally recognized entity without needing partners.

2. One Person Company Can Be Registered as an MSME

OPCs are eligible for MSME (Micro, Small, and Medium Enterprises) registration under the Udyam Registration Portal. Registering as an MSME provides several benefits, including:

• Lower interest rates on business loans
• Government subsidies and financial assistance
• Priority sector lending benefits

If an OPC qualifies under MSME criteria (investment and turnover limits), it can avail itself of various financial incentives provided by the Indian government.

3. One Person Company Can Be Registered as a Startup Under Startup India

An OPC is eligible for Startup India recognition if it meets the DPIIT (Department for Promotion of Industry and Internal Trade) criteria:

• The company must be less than 10 years old.
• The annual turnover must be below ₹100 crore.
• The business must focus on innovation, scalability, or technology.

Startups registered under this scheme benefit from tax exemptions, funding support, intellectual property rights assistance, and government tenders. Many tech-based OPCs choose this structure to receive financial and legal incentives.

4. One Person Company Can Be Registered as an E-Commerce Business

With the rapid growth of digital commerce in India, many entrepreneurs are exploring one person company registration for e-commerce businesses. An OPC can operate online marketplaces, dropshipping stores, or direct-to-consumer (D2C) brands. However, if an OPC is engaged in selling goods online, it must:

• Register for GST, as online sellers must comply with tax regulations.
• Follow consumer protection laws applicable to e-commerce businesses.
• Obtain an Import-Export Code (IEC) if selling internationally.

Due to its legal identity and credibility, an OPC is a preferred structure over sole proprietorships for online businesses.

5. One Person Company Can Be Registered as a Consulting Firm

Freelancers, professionals, and service providers often prefer one person company registration for consultancy firms. OPCs are widely used in industries such as:

• Legal consulting
• Financial advisory
• Marketing and branding services
• IT and software development consulting

The key advantage of an OPC in consulting is that it allows limited liability, tax deductions on expenses, and a professional corporate identity.

6. One Person Company Can Be Registered as a Manufacturing Business

Many small-scale manufacturers choose OPC registration to operate their business with corporate benefits and tax advantages. An OPC engaged in manufacturing must:

• Follow industrial and environmental laws based on the sector.
• Register under MSME for subsidy benefits.
• Comply with GST and excise regulations.

If the investment in plant and machinery exceeds ₹50 lakh, an OPC must convert into a Private Limited Company.

7. One Person Company Can Be Registered as a Not-for-Profit Entity?

OPCs cannot be registered as non-profit organizations. Businesses looking for charitable or non-profit activities should consider registering as a Section 8 Company, which is a separate entity under the Companies Act, 2013, designed for non-profit purposes.

8. One Person Company Can Be Registered as a Fintech Startup

OPCs in financial technology (fintech) must comply with additional regulations if they deal with:

• Payments and lending (RBI guidelines apply)
• Insurance-related services (IRDAI approval required)
• Investment and securities (SEBI compliance needed)

If an OPC is offering digital financial services, it must obtain necessary licenses and regulatory approvals to operate legally.

9. One Person Company Can Be Registered as an Export Business

For those looking to expand globally, one person company registration for export businesses is a viable option. To operate an export-based OPC, the business must:

• Obtain an Import-Export Code (IEC) from DGFT.
• Register under GST for cross-border transactions.
• Follow Foreign Exchange Management Act (FEMA) guidelines.

An OPC engaged in exports can also apply for export incentives and duty exemptions provided by the Indian government.

10. One Person Company Can Be Registered as a Digital Marketing Agency

A digital marketing OPC benefits from:

• Tax deductions on business expenses like software and ads.
• A credible business structure for clients and investors.
• Limited liability protection for business risks.

Freelancers and agencies offering SEO, social media marketing, and branding services prefer OPC registration due to its legal and financial benefits.

11. One Person Company Can Be Registered as a Franchise Business

Many franchise businesses operate under one person company registration to ensure a structured legal framework. Franchise owners can register an OPC to:

• Secure legal liability protection.
• Maintain financial transparency and tax benefits.
• Build a brand reputation with corporate identity.

12. One Person Company Can Be Registered as a Real Estate Consultancy

OPCs in real estate must follow state RERA laws and GST regulations. While real estate consultancies can operate as OPCs, property investment and trading activities are restricted under RBI guidelines.

13. One Person Company Can Be Registered as a Sole Proprietorship?

Many entrepreneurs confuse One Person Companies with Sole Proprietorships. However, a One Person Company is different from a Sole Proprietorship because:

14. One Person Company Can Be Registered as an IT Firm

Startups in software development, SaaS, and AI often register OPCs due to:

• Ease of foreign investment under FEMA.
• Intellectual property rights protection.
• Tax benefits under Startup India schemes.

15. One Person Company Can Be Registered as an Educational Institution

Many ed-tech startups prefer OPC registration for offering online courses, training programs, and e-learning solutions. By obtaining Startup India recognition, they can receive funding, tax benefits, and innovation grants.

Real-Life One Person Company Examples 

Here are examples of One Person Companies (OPCs) in India:

• Tech Savvy Solutions: This OPC specializes in IT consulting and software development. It offers tailored digital solutions such as web development, mobile applications, and IT strategy consulting, enabling startups and small businesses to leverage technology for growth.
  
• Creative Canvas: Operating as a one person design studio, Creative Canvas focuses on branding and graphic design. The company provides creative services including logo design, corporate identity development, and visual content creation, helping clients establish a compelling market presence.
  
• ConsultPro India: As a business advisory firm, ConsultPro India delivers expert consultancy in areas like business strategy, digital marketing, and operational efficiency. It assists companies in optimizing processes, enhancing market outreach, and driving sustainable growth.

These examples demonstrate how entrepreneurs across diverse sectors use OPCs to maintain autonomy, simplify compliance, and scale their businesses effectively.

A one person company can be registered as a private limited company and can be a perfect business model for solo entrepreneurs who want to enjoy the benefits of limited liability, a separate legal entity, and corporate recognition. 

If you’re ready to start your own OPC, RegisterKaro can help you with a smooth and hassle-free registration process. Contact us today to begin your journey as a successful business owner!

Frequently Asked Questions (FAQs)

1. Can a One Person Company be converted into a Private Limited Company?

Yes, as per Section 18 of the Companies Act, 2013, an OPC can be converted into a Private Limited Company (PLC) voluntarily after two years of incorporation or mandatorily if its paid-up capital exceeds ₹50 lakh or its annual turnover exceeds ₹2 crore in the preceding three financial years. The conversion process includes filing Form INC-6 with the Ministry of Corporate Affairs (MCA).

2. What are the tax benefits of registering a One Person Company?

An OPC is taxed at a flat rate of 25% under the Income Tax Act, 1961, which is lower than individual tax rates for high-income brackets. Additionally, OPCs can claim deductions on business expenses, depreciation, and startup benefits under Section 80-IAC of the Income Tax Act.

3. Is GST registration mandatory for a One Person Company?

GST registration is mandatory for an OPC if its annual turnover exceeds ₹40 lakh for goods and ₹20 lakh for services. However, businesses involved in inter-state trade or e-commerce operations must register for GST, irrespective of turnover.

4. Can an NRI register a One Person Company in India?

No, as per Rule 3 of the Companies (Incorporation) Rules, 2014, only an Indian citizen and resident can register an OPC. An NRI or foreign national cannot be the sole owner of an OPC, but they can invest or partner in a Private Limited Company instead.

5. What is the minimum capital requirement to register a One Person Company?

There is no minimum capital requirement to register an OPC. However, if the paid-up capital exceeds ₹50 lakh, the OPC must convert into a Private Limited Company.

6. Can a One Person Company own multiple businesses under one registration?

No, an OPC can operate only one business activity as per its Memorandum of Association (MoA). If a business wants to diversify, it must register a Private Limited Company instead.

7. How does an OPC dissolve or wind up its operations?

An OPC can be voluntarily closed by submitting Form STK-2 under the Fast Track Exit Scheme (FTE). If an OPC fails to comply with statutory requirements, it can be struck off by the MCA under Section 248 of the Companies Act, 2013.

8. Can an OPC raise funding from investors?

OPCs cannot raise equity funding since they have only one shareholder. However, an OPC can take loans, issue convertible debentures, or seek private investments. Startups looking for VC funding should opt for a Private Limited Company structure instead.

9. What are the annual compliance requirements for an OPC?

An OPC must fulfill these annual compliance requirements:

• File Form AOC-4 (financial statements) with MCA.
• Submit Form MGT-7A (annual return).
• Conduct an audit if turnover exceeds ₹1 crore.
• Maintain proper books of accounts and GST filings (if applicable).

Failure to comply can result in penalties starting from ₹50,000 to ₹5 lakh, as per the Companies Act.

10. Can a minor be a nominee for a One Person Company?

No, as per Rule 3(6) of the Companies (Incorporation) Rules, 2014, a nominee for an OPC must be an adult Indian citizen and resident. If the sole owner dies, the nominee inherits ownership and can continue or dissolve the OPC.