Delhi OPC Formation: Requirements, Costs, and Compliance Explained

If you are an entrepreneur in Delhi looking to start a company on your own, registering a One Person Company (OPC) is a smart and efficient choice. An OPC allows a single individual to establish a separate legal business entity. In this blog, we explain what is needed to form an OPC in Delhi, how much it costs, what compliance you must follow, all in simple and clear English.

What is an OPC?

A One Person Company (OPC) is a type of company where there is only one member and one director, often the same person. Unlike a sole proprietorship, an OPC has a separate legal identity, meaning the company is treated as a separate entity. Your personal assets are generally protected if the business faces liability. OPC works as a middle ground between a sole proprietorship and a private limited company, offering limited liability and simplicity without needing multiple shareholders.

Who is Eligible to Register an OPC in Delhi?

To register an OPC in Delhi, certain eligibility criteria must be met:

• The owner must be a natural person, not a company or trust.
• Must be an Indian citizen and resident of India. Foreign nationals or NRIs cannot register an OPC.
• A nominee must be appointed at the time of incorporation. The nominee will become the member in case the original owner cannot continue. The nominee must also be an Indian citizen and resident.
• Minimum authorised capital is usually at least ₹1,00,000.

Documents Required for OPC Registration

To register an OPC, you need the following documents:

• Identity proof of the owner and nominee, such as Aadhaar card, PAN card, Passport, or Voter ID.
• Address proof for both owner and nominee, such as a utility bill, bank statement, or rental agreement.
• Proof of registered office address, such as a utility bill, rent agreement, or property deed. If the office is rented, a NOC from the owner is required.
• Consent of nominee via the prescribed form.
• Digital Signature Certificate (DSC) for the director to sign and file documents online.
• Director Identification Number (DIN) for the sole director.
• Memorandum of Association (MoA) and Articles of Association (AoA), which define the company’s objectives and internal rules.

Step-by-Step Process to Register OPC in Delhi

1. Obtain DSC and DIN: First, get a Digital Signature Certificate and apply for a Director Identification Number for yourself.
2. Reserve a Name: File for name approval to reserve a unique company name.
3. Prepare MoA and AoA: Draft your company’s Memorandum and Articles of Association.
4. Submit Incorporation Forms: Fill the required forms and submit them to the Registrar of Companies (ROC) along with all documents.
5. Pay Government and Stamp Duty Fees: Depending on authorised capital and Delhi’s stamp duty rules, pay the required fees.
6. Receive Certificate of Incorporation, PAN & TAN: Once approved, the ROC issues the Certificate of Incorporation, PAN, and TAN. Your OPC becomes a legal entity.

The entire process usually takes about seven to ten working days if all documents are correct.

Cost of OPC Registration in Delhi

The cost depends on authorised capital, stamp duty, and professional help. Typical costs include:

• Digital Signature Certificate (DSC): ₹1,000–₹2,000
• Director Identification Number (DIN): ₹500
• Name Approval: ₹1,000
• Stamp Duty (MoA & AoA): varies with authorised capital
• Government Filing Fees: a few thousand rupees, depending on the capital
• Professional Fees (if using a CA or company secretary): ₹4,000–₹10,000

Overall, for a straightforward OPC in Delhi with basic authorised capital, the total cost usually ranges between ₹8,000 and ₹15,000.

Post-Incorporation Compliance for OPC

Once the OPC is registered, certain compliances are mandatory each year:

• File annual financial statements and annual returns with the Ministry of Corporate Affairs.
• Appoint a statutory auditor soon after incorporation and maintain proper accounting practices.
• Maintain statutory registers, books of accounts, and a registered office address for official communications.
• File income tax returns annually. If applicable, complete GST registration and file regular GST returns.

Failure to follow these requirements may result in penalties, director disqualification, or even strike-off of the company.

When an OPC Must Convert to a Private or Public Company

OPC is ideal for solo entrepreneurs, but there are limits. If an OPC’s paid-up capital exceeds ₹50 lakh or its average annual turnover exceeds ₹2 crore, it must convert into a private or public limited company. OPCs are not allowed to carry out non-banking financial or investment activities or issue public offers.

Why Choose OPC Registration

• Limited Liability and Separate Legal Identity: Personal assets remain separate from business liabilities.
• Single Owner Full Control: As the sole owner and director, you have full control of decisions without multiple shareholders.
• Simpler Compliance: Compared to larger companies, OPC requires fewer compliances. Annual General Meetings are not required.
• Suitable for Freelancers, Consultants, and Startups: OPC suits small business owners, service providers, and digital professionals who want a formal business structure without complexity.

For entrepreneurs in Delhi, OPC registration offers simplicity, legitimacy, and professional status without high investment or compliance pressure initially.

Key Tips Before You Begin OPC Registration

1. Check eligibility carefully; both the owner and the nominee must be Indian citizens and residents.
2. Choose a unique company name and reserve it early.
3. Ensure all documents are up-to-date.
4. Decide whether to handle the incorporation yourself or hire a professional for guidance.
5. Plan for post-incorporation compliance from day one.
6. If rapid growth is expected, plan for future conversion to Private Limited early.

Conclusion

OPC Registration in Delhi is a practical and cost-effective way for solo entrepreneurs to start a business with legal protection and corporate legitimacy. It offers a balance of control, liability protection, and manageable compliance. Costs are modest, and the process can be completed within a week or two if documents are ready. For smooth OPC registration and expert guidance in Delhi, Groom Tax can help you at every step, including documentation, compliance, and post-incorporation support.