Governing Act: Companies Act, 2013
Relevant Sections: Section 2(62) & Section 3; Rule 3 of Companies (Incorporation) Rules, 2014
Official Portal: Ministry of Corporate Affairs (mca.gov.in)
Statutory Fee: Zero MCA incorporation fee up to ₹15 Lakh nominal capital; state stamp duty applicable
A One Person Company (OPC) is a specialized corporate structure introduced under Section 2(62) of the Companies Act, 2013, enabling a single entrepreneur to operate a corporate entity with 100% ownership and limited liability protection.
An OPC bridges the gap between an unorganized sole proprietorship and a multi-shareholder private limited company. The promoter retains complete operational autonomy while protecting personal assets from business liabilities. The Act mandates the appointment of a Nominee Director in the Memorandum of Association who assumes management of the entity in the event of the sole subscriber's death or permanent incapacitation.
₹4999 / Fixed
A: Under Rule 3 of the Companies (Incorporation) Rules, any natural person who is an Indian citizen (whether resident in India or otherwise) is eligible to incorporate an OPC and act as a nominee. A person can incorporate only one OPC.
A: An OPC is exempt from holding Annual General Meetings (AGMs) under Section 96, does not require a Cash Flow Statement in financial reports, and can file simplified Annual Returns in Form MGT-7A signed by a single director without requiring a Company Secretary certification.
A: Yes. Under updated MCA rules, an OPC can convert voluntarily into a Private Limited Company or Public Company at any time without waiting for a mandatory 2-year lock-in period or turnover ceilings.
A: The nominee is nominated by the sole subscriber to take over ownership and management of the OPC in the event of the subscriber's death or incapacity to contract, ensuring uninterrupted perpetual succession.