OPC is a novel idea that was included in the 2013 Companies Act. A one-person company is a business that has been set up by one or more lone individuals. The majority of business owners favor this structure over a sole proprietorship. The Company Act 2013 allows for OPC registration in India. An OPC is a business with one director and one exclusive member. The same person may serve as both a director and a member. The person can register an OPC in India whether they are a resident or non-resident of India.

The benefits of an OPC are listed below.

  1. Net of protection -The Corporations Act of 2013 states that an unmarried shareholder’s obligation to an OPC is limited to the amount of unpaid subscription money in his or her call. It implies that the organization’s top brass includes his or her private possessions.
  1. Implementation is easy—Since OPC only needs one member and one candidate, it is easy to set it up. Director and member are both possible. There is no requirement for a minimum paid-up capital; nevertheless, the minimum permitted capital for establishing an OPC is Rs. Because of this, it is easier to start than other kinds of businesses.
  1. Simple to obtain funds -It is straightforward to raise money from venture capitalists, angel investors, incubators, and other sources since OPC company registration. Lending to companies over sole proprietorships is a preferred strategy of banks and other financial organizations. Consequently, getting money is made simple.
  1. Simple to manage – Because the OPC may be founded and run by a single person, managing its business becomes simple. Making judgments is easy, and the process moves quickly. By entering them in the minute book and having the lone member sign them, a member can easily pass both ordinary and exceptional resolutions. As a result, there won’t be any internal conflict or delays, making running and managing the company easy.
  1. Lower compliance levels-The OPC is exempt from some compliance obligations under the 2013 Companies Act. The OPC is not required to prepare the cash flow statement. The annual reports and books of accounts can only be signed by the director; the company secretary is not obligated to do so.
  2. Savings and Tax Flexibility -OPC enters into a binding contract with its shareholders or directors. As a result, you can receive compensation for your work as a director, collect rent as a lessor, and lend money to your own company while collecting interest as a creditor.
  1. Legal and social standing of the business – The one-person firm is the most typical business structure worldwide. Large corporations like working with private limited companies over dealing with single proprietorships. The private limited business structure benefits from corporate standing, which helps the business owner by offering corporate designations like directorships to help attract and keep qualified staff.

    These were the One Person Company insights, where we talked about some of the real advantages and disadvantages of OPC. We’re sure you found this to be a worthwhile read, With a great selection.

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