you may also like to read:Limited Liability Partnership (LLP) in India: Is It Better Than a Private Limited Company?
Imagine this:
You’re running your small business or startup alone. You have clients, revenue, goals — but one wrong step, one legal notice, or one bank loan default could wipe out not just your business…
but your personal savings, your car, even your family home.
This is the hidden risk of running a business as a sole proprietorship.
And this is exactly why the Indian government introduced the One Person LLC, formally known as the One Person Company (OPC).
It gives a solo entrepreneur the power of a full-fledged company — with limited liability, brand credibility, and legal protection — all while keeping compliance light and manageable.
Let’s dive deep.
you ma also like to read:LLP vs Private Limited Company: Which One Is Better for You?
A one person LLC (India’s OPC) is a private company structure where a single individual owns 100% of the business, but enjoys protections normally available only to larger companies.
This is the most common doubt — and the most important part of this article.
Many people ask:
“Why go through paperwork and compliance? Why not simply run a proprietorship?”
The answer is simple:
With a proprietorship, you and your business are legally the same person.
If something goes wrong:
It’s convenient, but dangerously unprotected.
There’s a misconception that OPC’s limited liability is “weak” or “half-strength.”
This is completely wrong.
Both operate under the Companies Act, 2013, giving:
If OPC suffers a loss, the founder’s personal property stays safe.
Exactly like a private limited company.
As long as:
your liability shield stays solid and intact.
This level of protection does NOT exist in proprietorship.
Here is the complete one person company registration process for 2025:
Used to sign documents online.
Issued during incorporation if you don’t already have one.
Process via RUN or SPICe+ forms on MCA portal.
Includes:
Legal documents defining company goals & rules.
Issued by MCA — your one person LLC is officially born.
| Stage | Approx Cost |
|---|---|
| DSC | ₹1,000–₹1,500 |
| MCA Filing Fees | ₹2,000–₹3,000 |
| Professional Fees | ₹3,000–₹7,000 |
Estimated cost: ₹7,000 – ₹12,000
Same tax treatment as private limited:
OPC has lighter compliance than Private Limited:
| Feature | One Person LLC (OPC) | Sole Proprietorship |
|---|---|---|
| Liability | Limited | Unlimited (risk to personal assets) |
| Legal Identity | Separate company | Same as owner |
| Funding | Moderate | Very difficult |
| Credibility | High | Low |
| Bank Loans | Easier | Hard |
| Compliance | Moderate | Very low |
If you want safety + growth → OPC wins hands down.
If you want no paperwork → Proprietorship.
Perfect for:
If you want to protect your personal assets and build a serious business, OPC is the smartest choice.
Yes. OPC is India’s legal equivalent of a single-member LLC.
No — both offer equally strong limited liability protection.
Not currently. Only Indian residents can apply.
You can easily convert to a Private Limited Company.
Only after crossing ₹20 lakh turnover.
Tabrez khan, founder of Business Zindagi, writes simple and practical guides on MSME growth, company registration, labour laws, and startup compliance. With hands-on experience in Indian business ecosystems, he helps entrepreneurs make smarter business decisions through clear, easy-to-understand explanations.
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