If you think you are a one-man army, and can handle situations single-handedly, you are truly one of a kind. If you truly possess a burning desire to succeed, you are bound to reach the summit. In a generations of startups and entrepreneurs, starting out on a business venture alone is the trend.
One Person Company is a type of business entity in which there is only one owner with limited liabilities. This one person act both as a shareholder as well as the director. The purpose of OPC concept is basically to eradicate the limitation of a sole proprietorship, which is the most popular form for small businesses in India. In a One Person Company, the liability of owner is limited to the invested capital in this form.
If you are the independent entrepreneur types, and want to establish your business without involving any other person, then choosing to establish a One Person Company (OPC) will be the right thing to do.
#Benefit No.1: Complete Control
Complete control of the company as single owner. This leads to fast decision making and execution. Also, OPC can appoint up to 15 directors for administrative functions, without giving any share to them.
#Benefit No.2: Freedom from Compliances
OPC is one of the easiest forms of corporate entities to manage. Very less filing with the Registrar of Companies (ROC) is necessary. Also, there is no mandate to conduct Annual General Meeting (AGM) and other regular compliances.
#Benefit No.3: Credibility in Market
In India, OPC is viewed as a Private limited company, which is a popular and well-known business structure. Corporate customers, vendors and government agencies prefer to deal with a Private Limited Company
rather than proprietorship firms.
#Benefit No.4: Limited Liability Protection
In case of a One Person Company
, your liability, in case the business fails, is limited to only the business assets. In case of a proprietorship, the liability is unlimited and the creditors of your business can even take hold of your home and personal assets, which can be used to settle the business liabilities.
#Benefit No.5: Easy to Sell
A One Person Company is quite easy to sell, incurs very less documentation and the cost involved is quite less.Setting up a One Person Company
helps startups and entrepreneurs test their business model easily, and once they build a marketable product, they approach Angel investors, Venture capitalists for funding and easily convert their OPC into a Private Limited Company.
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