Benefits of Registering a One Person Company in India for Non-Resident Indians
For a long time, Non-Resident Indians (NRIs) faced hurdles in starting businesses in India due to restrictive rules and complex compliance. That changed with the 2021 amendment to the Companies Act, 2013, which simplified the norms for One Person Companies (OPCs).
Now, Indian citizens living abroad who have spent at least 120 days in the country during the previous financial year can set up an OPC with ease. This business model provides limited liability, official recognition, and the freedom of single ownership.
To take advantage of these benefits, every entrepreneur must first understand how to register a one person company in India, since it lays the foundation for smooth operations, compliance, and credibility.
Why OPC Works Well for NRIs
A One Person Company offers the structure of a private limited company without the requirement of multiple owners. It is ideal for NRIs who want to operate independently but still enjoy the advantages of a legally recognized entity.
Here’s why OPC is attractive:
● Single Ownership, Full Control – You make decisions without depending on partners.
● Limited Liability – Personal assets remain protected; liability is restricted to your share in the business.
● Nominee for Continuity – A nominee takes over if the sole owner cannot continue, keeping the company active.
● Higher Credibility – Banks, vendors, and clients treat an OPC with more trust than an informal setup.
● Simpler Compliance – Compared to private limited companies, the compliance requirements are lighter and easier to handle.
For NRIs aiming to build a strong base in India, an OPC offers a balance of independence with professionalism.
Key Benefits for NRIs
Registering an OPC provides multiple advantages that directly support business growth:
1. Recognized Legal Identity
Your OPC is a separate legal entity under the Companies Act, 2013. This gives your business legitimacy for contracts, licenses, and government approvals.
2. Better Access to Finance
Banks and investors are more comfortable lending to or investing in registered companies. With an OPC, your chances of securing loans, credit facilities, and funding improve significantly.
3. Tax Benefits
OPCs can claim specific deductions and exemptions, which help save money and manage finances more effectively compared to unregistered setups.
4. International Trust
For NRIs dealing with global clients, a legally registered company in India adds a layer of credibility. It shows stability and seriousness in business dealings.
5. Flexibility with Protection
You enjoy the ease of running a small business with the safety net of limited liability, which keeps your personal wealth secure even during business risks.
Eligibility for NRIs
Post the 2021 amendment, NRIs can register an OPC in India if they meet these conditions:
● Must be an Indian citizen (includes NRIs).
● Must have stayed in India for at least 120 days in the previous financial year.
● Must appoint a nominee to ensure continuity.
This flexibility has opened doors for NRIs to bring their business ideas to India without unnecessary complications.
Documents Required for OPC Registration (NRI-Specific)
To register an OPC as an NRI, you need:
● Identity Proof: Passport, PAN card, and Aadhaar card.
● Residential Proof: Utility bill, rental agreement, or property ownership documents.
● Passport-size Photographs of the sole member.
● Proof of Registered Office in India: Utility bill, rental agreement, and NOC from the property owner.
● Nominee Details: Identity proof and consent form of the nominee.
How to Register a One Person Company in India as an NRI?
Registering an OPC involves a systematic process, most of which is now digitized under the MCA portal. Here are the key steps:
1. Obtain a Digital Signature Certificate (DSC): The first step is to get a DSC, which allows digital signing of online forms
2. DIN Allotment: The Director Identification Number (DIN) is automatically allotted when you file the SPICe+ (INC-32) form, so no separate application is needed
3. Reserve a Company Name: Apply through the RUN (Reserve Unique Name) service on the MCA portal. The name must comply with MCA naming guidelines.
4. Draft e-MOA and e-AOA: Prepare the Memorandum of Association (Form INC-33) and Articles of Association (Form INC-34) electronically.
5. File SPICe+ Form: Submit the SPICe+ (INC-32) form along with DSC, identity proof, office address proof, and nominee details.
6. Receive the Certificate of Incorporation: Once approved, the Registrar of Companies issues the Certificate of Incorporation, officially recognizing your OPC.
Knowing how to register a one person company in India as an NRI, following these steps ensures you comply with the law while keeping the process smooth.
Post-Registration Compliance
After registration, an OPC must meet certain compliance requirements:
● Maintain proper books of accounts.
● File annual returns with the Registrar of Companies.
● Conduct annual audits, if applicable.
● File income tax returns on time.
While compliance is lighter compared to private limited companies, fulfilling these obligations is necessary to maintain good legal standing.
Final Thoughts
For NRIs who want to start a business in India, an OPC is one of the best entry points. It combines single ownership with the advantages of limited liability, funding opportunities, and professional recognition.
By following the right process and understanding how to register a one person company in India, you can build a business that not only grows locally but also gains international trust.