The Government of India has opened new avenues for entrepreneurship by permitting foreign direct investment (FDI) in One Person Companies (OPCs), significantly enhancing the appeal of this corporate structure for global investors. This development, made effective through recent amendments to the Companies (Incorporation) Rules by the Ministry of Corporate Affairs (MCA), aligns with India’s efforts to liberalize its economy and attract international capital into small and medium businesses. As a result, Non-Resident Indians (NRIs) are now allowed to establish and invest in OPCs, removing earlier restrictions that limited OPC incorporation to resident Indian citizens only.

This policy change is expected to boost cross-border participation in India’s startup and small enterprise ecosystem. NRIs and foreign investors now have a simplified entry point into India’s corporate environment through OPCs, which offer the benefits of limited liability, a separate legal identity, and relaxed compliance obligations. The government’s move also coincides with the broader trend of digitizing company registration and minimizing regulatory hurdles, making it easier for overseas entrepreneurs to do business in India without requiring multiple stakeholders or partners.

The allowance of foreign investment in OPCs has also improved investor confidence and is likely to facilitate technology transfers, international collaborations, and the scaling of niche ventures led by solo founders. Sectors such as IT services, e-commerce, fintech, and consulting are expected to benefit the most, as they align well with the lean operational model of OPCs. This strategic opening signals India’s intent to become a more inclusive and globally connected business destination, even for single-owner companies.