E-mail Id
Whatsapp
We are ISO certified consultantancy, assure trustable service with no delay and zero hidden costs.
If a person wishes to start a business, he or she could do it as a sole proprietorship, with at least two directors and two members. A company can be formed with just 1 director and 1 member according to Section 2(62) of the Company's Act 2013. The compliance requirements are lower than those of a private company, so it is a less strict form of company. A single promoter acquires complete control over the firm, limiting his or her liability for the company's contributions. One person company is very much similar to private limited, the only difference is in the number of shareholders/ directors. In a one-person company, there should be only one director and in a private limited, there should be two.
One person company is a distinct legal organisation with limited liabilities. As a result, the director is not accountable for the firm's losses over the amount they put in the company as share capital.
When the proprietor dies, the sole proprietorship comes to an end. Since an OPC corporation has its legal personality, it would pass to the nominated director/ nominee and hence continue to exist.
Because an OPC's records must be audited every year, it has more trust with suppliers and credit institutions.
OPC is a private company, so it is easy to fundraise through venture capital, angel investors, incubators, etc. Banks and financial institutions prefer to lend to companies rather than proprietorships. This makes obtaining funds easier.
OPC directors do not have to prepare the cash flow statement. The company secretary does not need to sign the books of accounts or annual returns. Only the director needs to sign them.
As the OPC is a legal entity, banks and financial institutions give loans and other help easily when compared to private limited companies.
If OPC is innovative and unique, it will make it eligible for various start-up missions enabling tax benefits.
The benefit OPC has over every other company is that it can be easily converted to a Private limited company.