A One Person Company lets you run a business alone with the credibility and protection of a company. Here is what solo founders need to know.
Introduced under Section 2(62) of the Companies Act, 2013, a One Person Company (OPC) lets a single person enjoy limited liability and legal recognition without needing founding partners or multiple shareholders.
Key features
- Single shareholder and director (can be the same person)
- Separate legal entity from the owner
- Limited liability protection for personal assets
- Annual ROC compliance required
- Eligible to convert to Pvt Ltd once turnover exceeds ₹2 crore
Benefits for solo entrepreneurs
Full control without external shareholders, credibility in contracts and tenders, corporate tax rates with deductions, and a clear path to convert into a Private Limited Company when you are ready to scale or raise funding.
Limitations to know
Only one member is allowed, compliance costs are higher than a proprietorship, direct equity investment is not possible, and only Indian residents can incorporate an OPC. Certain finance related businesses are also restricted.
Who should choose OPC
Freelancers wanting corporate credibility, consultants and coaches, online sellers and solopreneurs scaling from a proprietorship, anyone who wants to work solo today but build like a company tomorrow.