Who Can Apply for Single Owner Company Registration in Delhi

Who Can Apply for Single Owner Company Registration in Delhi?

Starting a business alone is no longer a daunting task in India. If you want to run a company as a single owner and still enjoy the benefits of a registered company, Single Owner Company Registration, also known as One Person Company (OPC), is the best option. This structure is especially popular among freelancers, consultants, startups, and small business owners in Delhi.

In this blog, we will explain who can apply for single owner company registration in Delhi, the eligibility rules, and other important points in a very simple and clear way.

What Is a Single Owner Company (OPC)?

A Single Owner Company or One Person Company (OPC) is a type of company where only one person is the owner and director. It was introduced under the Companies Act, 2013, to support solo entrepreneurs.

Earlier, if a person wanted to start a company, at least two directors were required. OPC changed this rule and allowed one individual to start and run a company legally.

Delhi is a hub for:

  • Startups
  • Consultants
  • IT professionals
  • Online businesses
  • Traders and service providers

Many people want to work independently but still need:

  • Legal recognition
  • Limited liability
  • Better business credibility

OPC registration fulfills all these needs, which is why it is widely chosen in Delhi.

Who Can Apply for Single Owner Company Registration in Delhi?

Not everyone can apply for OPC registration. The government has defined clear eligibility rules. Let’s understand them one by one.

1. Only an Indian Citizen Can Apply

To register a Single Owner Company in Delhi:

  • The applicant must be an Indian citizen
  • The applicant must hold a valid Indian PAN card

Foreign nationals and NRIs are not allowed to start an OPC in India.

2. The Applicant Must Be a Resident of India

The person applying must be a resident of India.

What does “Resident” mean?

  • The person must have stayed in India for at least 120 days in the previous financial year

This rule ensures that the owner is actively involved in managing the company.

3. Only One OPC Allowed Per Person

A person can:

  • Start only one Single Owner Company at a time

This means:

  • You cannot open two OPCs in your name
  • You also cannot be a nominee in more than one OPC

This rule avoids misuse of the OPC structure.

4. Minimum and Maximum Age Limit

  • Minimum age: 18 years
  • Maximum age: No upper age limit

The person must be legally capable of signing contracts and managing business responsibilities.

5. Nominee Appointment Is Mandatory

One important rule of OPC registration is nominee appointment.

Who is a nominee?

A nominee is a person who will take over the company if:

  • The owner dies, or
  • The owner becomes incapable of running the business

Nominee eligibility:

  • Must be an Indian citizen
  • Must be a resident of India
  • Must not be a nominee in another OPC

Written consent from the nominee is compulsory.

6. Only Natural Persons Can Apply

  • Only individual human beings can apply
  • Companies, LLPs, or trusts cannot start an OPC

This ensures OPCs remain focused on individual entrepreneurship.

7. Business Activities Allowed Under OPC

Most lawful business activities are allowed, such as:

  • IT services
  • Consulting
  • Marketing agencies
  • Trading businesses
  • Online services
  • Freelancing and professional services

Activities not allowed:

  • Non-banking financial investment activities
  • Certain financial services are restricted by law

Before applying, it is always good to check business activity approval.

Documents Required for Eligibility Verification

To confirm eligibility, the following documents are required:

  • PAN card of the owner
  • Aadhaar card
  • Passport-size photo
  • Address proof (electricity bill, bank statement, etc.)
  • Registered office address proof
  • Nominee’s PAN and Aadhaar
  • Nominee consent form

Professional service providers like Groom Tax help ensure all documents are correct and compliant.

Why OPC Is a Good Option for Single Owners

1. Limited Liability Protection

Your personal assets remain safe. Losses are limited to the company’s investment.

The company has its own identity, separate from the owner.

3. Easy Compliance Compared to Pvt Ltd

OPCs have fewer legal and annual compliance requirements.

4. Better Trust and Credibility

Clients, banks, and government bodies trust registered companies more.

OPC vs Sole Proprietorship

FeatureOPCSole Proprietorship
Legal identitySeparateSame as owner
LiabilityLimitedUnlimited
CredibilityHighLow
OwnershipSingleSingle
ComplianceModerateVery low

For long-term growth, OPC is often a better choice.

Can OPC Be Converted into a Private Limited Company?

Yes. An OPC can be converted into a:

  • Private Limited Company
  • Public Limited Company (after meeting conditions)

This flexibility makes OPC ideal for businesses planning future expansion.

Common Eligibility Mistakes to Avoid

Many applications get delayed or rejected due to:

  • Incorrect nominee details
  • Multiple OPC ownership attempts
  • Wrong residency status
  • Incomplete documents

Professional guidance from experts like Groom Tax helps avoid these mistakes and ensures smooth registration.

How the Groom Tax Helps in OPC Registration

Understanding eligibility rules and government compliance can be confusing for first-time entrepreneurs. Groom Tax assists business owners by:

  • Checking eligibility criteria
  • Verifying documents
  • Handling MCA registration
  • Ensuring legal compliance
  • Providing end-to-end support

With proper guidance, the registration process becomes stress-free and accurate.

Is OPC Registration Right for You?

Single Owner Company Registration in Delhi is an excellent option for individuals who want to start a business independently with legal protection and professional credibility. However, not everyone is eligible, and understanding the rules is very important before applying.

If you are:

  • An Indian citizen
  • A resident of India
  • Planning to run a business alone

Then OPC registration in Delhi could be the right step for you. With expert assistance from professionals like Groom Tax, you can complete the process smoothly and confidently.

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