OPC is a concept for the new age business ownership. Mentioned below are few advantages providing deeper insights about an OPC
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.
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.
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.
One Person Company needs to have its books audited which increases the credibility of it among the vendors and the financial lending institutes.
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.
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.
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.
Deduction benefits given to an OPC are numeration paid to the director, presumptive taxation etc as per the income tax act.
Click here for Single Person Company