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Company Law

Tax Guide

What is a One Person Company (OPC) and who can form it?

Key mapping

A One Person Company (Section 2(62) of Companies Act 2013) is a private limited company with only one member. Can be formed only by an Indian resident. Nominee is mandatory. OPC files MGT-7A (simplified annual return).

Explanation

OPC (One Person Company) is governed by Sections 2(62) and 3(1)(c) of the Companies Act 2013. Only one member (natural person, Indian citizen, resident in India for ≥182 days in the preceding calendar year) can form an OPC. A nominee must be appointed — the nominee takes over if the sole member dies or becomes incapacitated. OPC has minimum 1 director (usually the same as the sole member). Filing: OPC files AOC-4 but uses MGT-7A (simplified annual return). OPC with paid-up capital > ₹50 lakh or turnover > ₹2 crore must mandatorily convert to a regular Pvt Ltd. Verify on the MCA V3 portal.

Related terms and sections

OPCOne Person CompanySection 2(62)single membernomineeMGT-7A50 lakh2 crore conversion

Use this in practice

Company Incorporation →

Related sections

IT Act 2025 Section Mapper →

All section references are sourced from the Income Tax Act 2025 (official gazette, incometaxindia.gov.in) and cross-referenced against CBDT's comparative statement. Always verify on the official portal before filing. This page is for reference only and does not constitute legal or tax advice.