What is OPC?
A One Person Company (OPC) is a legal entity that allows a single person to run a business with limited liability. It offers the benefits of a private limited company but requires only one director and shareholder.
Why OPC?
Introduced under the Companies Act, 2013, OPC supports freelancers, small business owners, and solo entrepreneurs with a formal business structure.
OPC vs Sole Proprietorship
- OPC: Limited liability, separate legal identity, better funding opportunities.
- Sole Proprietorship: No separate identity, unlimited liability.
Benefits of OPC in Chennai
- Legal protection & limited liability
- Better access to funding
- Simple compliance
- Full control and flexibility
Eligibility Criteria
- Only Indian residents can form an OPC
- Must have a nominee (also an Indian resident)
- Cannot operate in financial investment sectors
- Voluntary conversion to Pvt Ltd only after 2 years or ₹2 Cr turnover
Required Documents
- Director’s PAN, Aadhaar, photo, contact details
- Address proof (latest utility bill, rent agreement, NOC)
- Nominee’s details & Form INC-3
Registration Process
- Apply for DSC
- Apply for DIN
- Name approval via SPICe+
- File incorporation through SPICe+
- Receive Certificate of Incorporation, PAN & TAN
Cost & Timeline
- DSC: ₹500–₹1,500
- Name approval: ₹1,000
- Professional fees: ₹4,000–₹8,000
- Time: 7–10 working days
Post-Registration Compliance
- Open a company bank account
- GST registration (if applicable)
- Maintain financial records
- File annual ROC returns (AOC-4 & MGT-7A)
Common Mistakes to Avoid
- Name conflicts
- Missing nominee
- Incomplete or wrong documents
- Ignoring annual compliance
Why Chennai?
Chennai offers a strong startup ecosystem, skilled talent, and excellent infrastructure, making it an ideal location for launching your OPC.
Online OPC Registration
Yes, the entire process is 100% online through the MCA portal, with professional assistance available.
Myths Busted
- OPCs can’t raise funds – They can
- Only tech startups from OPCs – Freelancers, traders, etc., can too
- OPC is complex – It's actually simpler
OPC to Pvt Ltd Conversion
Can be done after two years or with a ₹2 Cr turnover by filing the required forms and resolutions.
Conclusion
Starting an OPC in Chennai is ideal for solo entrepreneurs seeking legal recognition, tax benefits, and business growth. It's affordable, simple, and suited for future expansion.
