One Person Company (OPC) Registration

A nominee is a person appointed by the sole member who will take over the company in case of the member's death or incapacity. The nominee's written consent is required at the time of incorporation. This ensures business continuity — the nominee becomes the new member and can appoint a new nominee.

Yes. An OPC must mandatorily convert to a Pvt Ltd company if its average annual turnover exceeds ₹2 crores for 3 consecutive years or if paid-up capital exceeds ₹50 lakhs. Voluntary conversion is allowed anytime after 2 years from incorporation (or immediately if turnover crosses the threshold).

An OPC has limited liability protection, separate legal entity status, and perpetual succession — a sole proprietorship does not. In a sole proprietorship, personal assets can be seized for business debts. An OPC also has more credibility with banks, investors, and clients.

Only 1 director is required. The sole member can also be the sole director. The maximum can be up to 15 directors. If more directors are needed, the limit can be increased by passing a special resolution.

Typically 7-10 working days, subject to MCA approval. The process involves: obtaining DSC (1 day), name approval through RUN (1-2 days), MOA/AOA drafting (1-2 days), and filing SPICe+ for incorporation (3-5 days). PAN and TAN are issued automatically with the Certificate of Incorporation.

Yes, an NRI can form an OPC in India. However, the NRI must stay in India for at least 182 days in the previous financial year to qualify as a resident. If not, the nominee must be a resident Indian. The NRI needs a valid DIN, DSC, and passport.

Yes, an OPC must get its accounts audited every year by a practicing Chartered Accountant, regardless of turnover. This is the same as a Pvt Ltd company. The audit requirement is under the Companies Act, 2013. Additionally, income tax returns must be filed annually.

OPC is taxed at the same rate as a Private Limited Company. Domestic companies with turnover up to ₹400 crore pay 25% corporate tax (plus surcharge and cess). Under the new regime (Section 115BAA), the effective rate is ~25.17%. GST applies separately if turnover exceeds ₹20 lakhs.

OPC compliances include: annual audit by a CA, filing annual returns with ROC (MGT-7), filing financial statements (AOC-4), filing income tax returns, holding at least one board meeting in each half of the calendar year (minimum 2 meetings), and filing DIR-3 KYC for the director annually.