Advantages of One Person Company

A One Person Company permits a person to run a company limited by shares and sole proprietorship, which means a business entity which is run and owned by 1 person and where there is no difference between the owner and the company.

OPC is a concept for the new age business ownership. Mentioned below are few advantages providing deeper insights about an OPC

1. Lesser Compliance Burden:

One Person Company has been provided with a number of exemptions and thus have a lesser compliance related burden. A One Person Company is similar to a Private Limited Company. Hence the provisions are same as it is for Private Companies.

2. Minimum Requirements:

The requirements for a Once Person Company are very minimum as they need only one Shareholder, one director and one Nominee. Also, that the shareholder and director can be one person. The minimum share capital needs to be Rs. 1 Lac.

3. Consistency:

Unlike the Proprietorship, OPC has separate legal entities; it would pass on to the nominee, director and hence has a continuous existence followed by a much longer life.

4. Credibility:

One Person Company needs to have its books audited which increases the credibility of it among the vendors and the financial lending institutes.

5. Limited Liability for Directors and Shareholders:

For incorporating 'single-person company' the shareholder are interested as they get benefit of limited liability. The liability of the shareholders are limited only to their shares.

6. Legal Status And Social Recognition For Your Business:

One Person Company has the same business structure as the Private Limited, it is the most popular business type which provides a sense of confidence to the suppliers and customers. It gives a social recognition for your business and a legal status.

7. Easy Funding:

Banking and financial institutions prefer to lend money to the company rather than proprietary firms. In most of the situations, Banks insist the entrepreneurs to convert their firm into a Private Limited company before sanctioning funds. It is hence recommended to register start-ups as One Person Company to benefit in the market.

8. Benefits under Income tax law

Deduction benefits given to an OPC are numeration paid to the director, presumptive taxation etc as per the income tax act.

Looking to incorporate a One Person Company?To know more visit Quick Company.

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