One Person Company (OPC): meaning, eligibility and limits
A One Person Company is a private company with a single member who must be an Indian citizen. Since 2021 there is no paid-up capital or turnover cap.
Short answer
A One Person Company (OPC) is a private company with only one member, defined in section 2(62) of the Companies Act, 2013. The member must be a natural person who is an Indian citizen, whether resident or not, and must name a nominee who takes over if the member dies or becomes incapable.
- Members
- Exactly one, a natural person who is an Indian citizen
- Nominee
- Mandatory, also an Indian citizen
- Residency
- Includes NRIs since 2021 (resident means 120 days in India)
- Name ends with
- (OPC) Private Limited
Eligibility and limits
A person can incorporate only one OPC or be the nominee in only one OPC. An OPC cannot carry on non-banking financial investment activities or invest in securities of other companies as a business. Since the Companies (Incorporation) Second Amendment Rules, 2021, there is no paid-up capital or turnover limit that forces conversion, and an OPC can convert into a private or public company at any time. Non-resident Indian citizens can now form OPCs, and the residency period for this purpose was reduced to 120 days.
Compliance relaxations
An OPC need not hold an AGM, and a resolution entered in the minute book and signed by the member counts as passed at a meeting. It needs at least one director and must hold at least one board meeting in each half of the calendar year with a 90-day gap. Its financial statements need not include a cash flow statement, and the annual return can be signed by the director alone. It still needs a statutory audit, annual ROC filings and income-tax returns.
Why it matters for startups
An OPC suits a solo consultant or founder who wants limited liability and a corporate identity. But it cannot issue shares to co-founders or investors while it remains an OPC, so if you expect to raise equity or bring in a partner, you will need to convert it into a private limited company, which adds a step later.
Related services
Sources
Written by the Refogo Editorial Team from the official sources above and checked on 2026-10-31. Laws, rates and due dates change, and authorities often extend deadlines, so confirm your own case with a qualified professional. This is general information, not legal or tax advice. Read our editorial policy or report an error to support@refogo.com.
Common questions
Can a foreigner form an OPC in India?
No. Only a natural person who is an Indian citizen can be the member or nominee of an OPC.
Is there a turnover limit for an OPC?
No. The earlier limits of ₹50 lakh paid-up capital and ₹2 crore turnover were removed in 2021.
Does an OPC pay the same tax as other companies?
Yes. An OPC is taxed as a domestic company and can choose the concessional 22% regime if it meets the conditions.