A One Person Company lets a single individual run a business as a company with limited liability. The member must be a natural person who is an Indian citizen, and must nominate another person to take over in case of death or incapacity.
Since 1 April 2021, Indian citizens who are non-resident can also form an OPC, and the residency test was reduced to 120 days. The earlier rule that forced an OPC to convert once it crossed a paid-up capital or turnover limit was removed, so it can now convert voluntarily.
Key points
- One member and one nominee
- Limited liability and separate legal entity
- Needs at least one board meeting in each half of the year
- Annual ROC filings and statutory audit still apply
- Can convert to a private or public company voluntarily
General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.
CA Rahul Rajendra MohiteACA, M.Com · ICAI Membership No. 622387 · Founder, Rahul R. Mohite & Co., PuneFirm profile and key facts