Can a Private Limited Company Be Owned by One Person?
Yes, through a One Person Company. Only an individual who is an Indian citizen can form one.
CA Harun Raaj
makeitlegit.in
Short Answer
Yes — through a One Person Company, if you are an individual who is an Indian citizen. A company may be formed by one person, but only where the company to be formed is a One Person Company, and a One Person Company is a private company. Only a natural person who is an Indian citizen, whether resident in India or otherwise, is eligible to incorporate a One Person Company. (Companies Act, 2013, Section 3(1)(c); Companies (Incorporation) Rules, 2014, Rule 3(1)) [1]
What you cannot do is form an ordinary private company with a single subscriber: the Act requires two or more persons for that. (Companies Act, 2013, Section 3(1)(b)) [2]
So the short answer has a caveat: one person can own a private limited company, but the vehicle has to be a One Person Company — and that person must be an individual Indian citizen, not a company or a foreign national.
What the Act Says, Section by Section
A company may be formed for any lawful purpose by seven or more persons (public company), two or more persons (private company), or one person (One Person Company). (Companies Act, 2013, Section 3(1)) [3]
A "One Person Company" is defined as a company which has only one person as a member. (Companies Act, 2013, Section 2(62)) [4]
And a One Person Company is expressly described in Section 3(1)(c) as "One Person Company that is to say, a private company" — so it is a species of private company, not a separate category. (Companies Act, 2013, Section 3(1)(c)) [5]
The Nominee Requirement
A One Person Company differs structurally from an ordinary private company: its memorandum must indicate the name of the other person who will become the member on the subscriber's death or incapacity, and that person's prior written consent must be filed with the Registrar along with the memorandum and articles. (Companies Act, 2013, Section 3(1) proviso) [6]
This is why a One Person Company is not simply "a private company with one shareholder" — the continuity of the single membership is built into the constitution. (Companies Act, 2013, Section 3(1) proviso; Section 2(62)) [7]
The nominee's name is stated in the memorandum, and the nomination details along with the nominee's consent are filled in Form INC-32 (SPICe+) as a declaration, filed with the Registrar at the time of incorporation along with the e-memorandum and e-articles. A later change of nominee is filed as a declaration in Form INC-4. The old nominee consent form, INC-3, has been omitted. (Companies (Incorporation) Rules, 2014, Rule 4(2)–(5), as amended by the Companies (Incorporation) Amendment Rules, 2023, w.e.f. 23 January 2023) [8]
The rules also limit who can use this route. Only a natural person who is an Indian citizen, whether resident in India or otherwise, can incorporate a One Person Company or be its nominee. No person can incorporate more than one One Person Company or be a nominee in more than one. No minor can be a member or nominee. A One Person Company cannot be incorporated or converted into a section 8 company, and it cannot carry out Non-Banking Financial Investment activities, including investment in securities of any body corporate. (Companies (Incorporation) Rules, 2014, Rule 3(1), 3(2), 3(4), 3(5) and 3(6), as amended w.e.f. 1 April 2021) [8]
Ordinary Private Company vs One Person Company
| Feature | Ordinary private company | One Person Company |
|---|---|---|
| Minimum subscribers | Two or more persons | One person, who must be an individual Indian citizen (Rule 3(1)) |
| Statutory basis | Section 3(1)(b) | Section 3(1)(c) |
| Is it a private company? | Yes | Yes — Section 3(1)(c) says "that is to say, a private company" |
| Nominee in the memorandum | Not required | Required by the proviso to Section 3(1) |
| Member limit in the articles | Two hundred, as per Section 2(68) | Excepted from the two hundred limit by Section 2(68)(ii) |
(Companies Act, 2013, Sections 3(1)(b), 3(1)(c), 2(62) and 2(68); Companies (Incorporation) Rules, 2014, Rule 3(1)) [9]
The two-hundred-member limit comes from the definition of "private company", which requires the articles to restrict the right to transfer shares and — except in the case of a One Person Company — to limit the number of members to two hundred. (Companies Act, 2013, Section 2(68)) [10]
Private vs Public — the Distinction That Matters
A "public company" is defined negatively and by capital: it is a company which is not a private company and has a minimum paid-up share capital as may be prescribed. (Companies Act, 2013, Section 2(71)) [11]
So the private/public distinction is driven by the articles (transfer restrictions and member limit), not by the number of owners. That is why a One Person Company, despite having one member, is a private company. There is one exception: a subsidiary of a company that is not a private company is deemed to be a public company for the purposes of the Act, even where the subsidiary continues to be a private company in its articles. (Companies Act, 2013, Section 2(68); Section 2(71) and its proviso) [12]
The Companies (Amendment) Act, 2015 removed the fixed rupee amounts from both definitions: "of one lakh rupees or such higher paid-up share capital" from Section 2(68), and "of five lakh rupees or such higher paid-up capital," from Section 2(71). Both definitions still refer to a minimum paid-up share capital "as may be prescribed", so the Act itself no longer fixes a rupee figure for either type of company. (Companies Act, 2013, Sections 2(68) and 2(71) as amended by the Companies (Amendment) Act, 2015) [13]
Why the Number of Owners Is Not the Test
The number of owners decides which route you use, not whether the company is private. Section 3(1) fixes who may subscribe — seven for a public company, two for a private company, one for a One Person Company — while Section 2(68) fixes what makes a company private: the articles must restrict the right to transfer shares and, except for a One Person Company, limit the members to two hundred. That is the statutory reason a company with a single member can still sit inside the private company family. (Companies Act, 2013, Section 3(1); Section 2(68)) [14]
What the Company Needs to Be Formed
The memorandum must state: the company's name, with the last words "Private Limited" for a private limited company; the State in which the registered office is to be situated; the objects of the company; the liability of members; for a company with share capital, the share capital and the shares each subscriber takes; and, for a One Person Company, the name of the person who will become the member if the subscriber dies. (Companies Act, 2013, Section 4(1)(a)–(f)) [15]
The articles must contain the regulations for management of the company, and any prescribed matters. (Companies Act, 2013, Section 5(1) and 5(2)) [16]
The memorandum and articles must be duly signed by all subscribers, and a prescribed declaration must be filed by the specified professionals and by a person named in the articles. (Companies Act, 2013, Section 7(1)(a) and 7(1)(b)) [17]
From the date of incorporation mentioned in the certificate of incorporation issued under Section 7(2), the subscribers and members become a body corporate, and the Registrar allots a corporate identity number from that date. The memorandum and articles, when registered, bind the company and its members. (Companies Act, 2013, Section 7(2) and 7(3); Section 9; Section 10(1)) [18]
Both routes are filed through the same integrated incorporation form, SPICe+, whose Part B covers incorporation together with the linked e-MoA (INC-33) and e-AoA (INC-34) forms. The fee is set out in the Companies (Registration Offices and Fees) Rules, 2014 and should be checked before filing. (MCA V3 portal, SPICe+ form, as seen 9 Sep 2026; Companies Act, 2013, Section 7; Companies (Incorporation) Rules, 2014, Rule 4(2); Companies (Registration Offices and Fees) Rules, 2014, Annexure — Table of Fees) [19]
FAQ
Q1: Can one person own a private limited company in India?
Yes, if it is a One Person Company and the owner is an individual who is an Indian citizen (resident in India or not). Section 3(1)(c) permits formation by one person where the company is to be a One Person Company, and describes it as a private company. Rule 3(1) limits this to natural persons who are Indian citizens, so a company or a foreign national cannot form one. (Companies Act, 2013, Section 3(1)(c); Companies (Incorporation) Rules, 2014, Rule 3(1)) [20]
Q2: Can an ordinary private company have just one shareholder?
No. An ordinary private company is formed by two or more persons under Section 3(1)(b). (Companies Act, 2013, Section 3(1)(b)) [21]
Q3: Is a One Person Company a private limited company?
Yes. Section 3(1)(c) describes it as "One Person Company that is to say, a private company". (Companies Act, 2013, Section 3(1)(c); Section 2(62)) [22]
Q4: Does a One Person Company need a nominee?
Yes. The memorandum must name the person who will become the member if the subscriber dies or becomes incapacitated. The nominee's consent is filed with the Registrar as a declaration in Form INC-32 (SPICe+). The nominee must also be an individual who is an Indian citizen and cannot be a minor. (Companies Act, 2013, Section 3(1) proviso; Companies (Incorporation) Rules, 2014, Rules 3(1), 3(4) and 4(2)) [23]
Q5: What is the maximum number of members in a private company?
Two hundred, as required by the definition of "private company" — except in the case of a One Person Company, which is expressly excepted. (Companies Act, 2013, Section 2(68)) [24]
---
Internal links: See makeitlegit.in/start for entity selection guidance, and makeitlegit.in/tools/company-type-comparison for a side-by-side comparison of entity types.
Primary source: Companies Act, 2013 — Sections 2(62), 2(68), 2(71), 3, 4, 5, 7, 9 and 10; Companies (Incorporation) Rules, 2014 — Rules 3 and 4.
{
"@context": "https://schema.org",
"@type": "Article",
"headline": "Can a Private Limited Company Be Owned by One Person?",
"url": "https://www.makeitlegit.in/insights/ent-one-person-company-vs-private-limited",
"publisher": { "@type": "Organization", "name": "makeitlegit" }
}
Sources
- Companies Act, 2013, Section 3(1)(c) — one person, where the company is to be One Person Company that is to say, a private company; Companies (Incorporation) Rules, 2014, Rule 3(1) (as amended by G.S.R. 91(E), w.e.f. 1-4-2021) — eligibility to incorporate a One Person Company
- Companies Act, 2013, Section 3(1)(b) — two or more persons, where the company to be formed is to be a private company
- Companies Act, 2013, Section 3(1) — Formation of company
- Companies Act, 2013, Section 2(62) — "One Person Company"
- Companies Act, 2013, Section 3(1)(c) — One Person Company that is to say, a private company
- Companies Act, 2013, Section 3(1) proviso — nominee of a One Person Company
- Companies Act, 2013, Section 3(1) proviso — nominee; Section 2(62) — "One Person Company"
- Companies (Incorporation) Rules, 2014, Rule 3 — One Person Company (as amended by G.S.R. 91(E), w.e.f. 1-4-2021); Rule 4 — Nomination by the subscriber or member of One Person Company (as amended by the Companies (Incorporation) Amendment Rules, 2023, G.S.R. 42(E), w.e.f. 23-1-2023)
- Companies Act, 2013, Sections 3(1)(b), 3(1)(c), 2(62) and 2(68) — private company and One Person Company; Companies (Incorporation) Rules, 2014, Rule 3(1)
- Companies Act, 2013, Section 2(68) — "private company"
- Companies Act, 2013, Section 2(71) — "public company"
- Companies Act, 2013, Section 2(68) — "private company"; Section 2(71) and proviso — "public company"
- Companies Act, 2013, Sections 2(68) and 2(71) as amended by the Companies (Amendment) Act, 2015 (Act 21 of 2015)
- Companies Act, 2013, Section 3(1) — Formation of company; Section 2(68) — "private company"
- Companies Act, 2013, Section 4(1)(a)–(f) — Memorandum
- Companies Act, 2013, Section 5(1) and 5(2) — Articles
- Companies Act, 2013, Section 7(1)(a) and 7(1)(b) — signatures and declaration
- Companies Act, 2013, Section 7(2) — certificate of incorporation; Section 7(3) — corporate identity number; Section 9 — Effect of registration; Section 10(1) — Effect of memorandum and articles
- MCA V3 portal, SPICe+ form, as seen 9 Sep 2026; Companies Act, 2013, Section 7 — Incorporation of company; Companies (Incorporation) Rules, 2014, Rule 4(2); Companies (Registration Offices and Fees) Rules, 2014, Annexure — Table of Fees
- Companies Act, 2013, Section 3(1)(c) — One Person Company; Companies (Incorporation) Rules, 2014, Rule 3(1)
- Companies Act, 2013, Section 3(1)(b) — private company
- Companies Act, 2013, Section 3(1)(c); Section 2(62) — "One Person Company"
- Companies Act, 2013, Section 3(1) proviso — nominee of a One Person Company; Companies (Incorporation) Rules, 2014, Rules 3(1), 3(4) and 4(2)
- Companies Act, 2013, Section 2(68) — "private company"
---
See Also
Frequently Asked Questions
Can one person own a private limited company in India?+
Yes, if it is a One Person Company and the owner is an individual who is an Indian citizen (resident in India or not). Section 3(1)(c) permits formation by one person where the company is to be a One Person Company, and describes it as a private company. Rule 3(1) limits this to natural persons who are Indian citizens, so a company or a foreign national cannot form one. (Companies Act, 2013, Section 3(1)(c); Companies (Incorporation) Rules, 2014, Rule 3(1))
Can an ordinary private company have just one shareholder?+
No. An ordinary private company is formed by two or more persons under Section 3(1)(b). (Companies Act, 2013, Section 3(1)(b))
Is a One Person Company a private limited company?+
Yes. Section 3(1)(c) describes it as "One Person Company that is to say, a private company". (Companies Act, 2013, Section 3(1)(c); Section 2(62))
Does a One Person Company need a nominee?+
Yes. The memorandum must name the person who will become the member if the subscriber dies or becomes incapacitated. The nominee's consent is filed with the Registrar as a declaration in Form INC-32 (SPICe+). The nominee must also be an individual who is an Indian citizen and cannot be a minor. (Companies Act, 2013, Section 3(1) proviso; Companies (Incorporation) Rules, 2014, Rules 3(1), 3(4) and 4(2))
What is the maximum number of members in a private company?+
Two hundred, as required by the definition of "private company" — except in the case of a One Person Company, which is expressly excepted. (Companies Act, 2013, Section 2(68))
Next step: comparing business structures
Structure + Setup Plan — ₹4,999 flat. A 60-minute CA call, a written recommendation citing the Act, and your exact incorporation checklist. Government fees and filing execution are separate.