Why Funding is not a problem for One Person Company (OPC)?

Yes, it is true. Funding is not a problem for One Person Company (OPC) subject to if you have a good business idea and business plan.

The Reserve Bank of India (RBI) has instructed banks to increase the funding made to priority sectors, viz agriculture and small scale industries. Eligible priority sector lending:

Manufacturing Sector

Enterprises

Investment in Plant & Machinery

Micro Enterprises

Do not exceed 25 lakhs rupees

Small Enterprises

More than 25 Lakhs but does not exceed 5 crores

Service Sector

Enterprises

Investment in Plant & Machinery

Micro Enterprises

Do not exceed 10 lakhs rupees

Small Enterprises

More than 10 Lakhs but does not exceed 2 crores

 

One Person Company coming under any of above category may fall under priority sector lending. There is enormous scope for One Person Companies to leverage benefits of priority sector lending. 

Further, there are some additional benefits:

  • No ownership is transferred to bank.
  • Bank also lends without security up to a certain limit, subject to strong business plan and projections.
  • In case of any default, the liability is limited only up to the share value in the company.

Therefore, doesn’t worry about the funds, just concentrate on your core business idea, and evolve it into a plan, incorporate a One Person Company (OPC) with QuickCompany.in and start your business today!

 


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