One Person Company in India

Advantages and Benefits of One Person Company There are lots of benefits when you go for registering one person company in india. Continue reading to find some crucial points on the advantages of one person company.

Single Promoter One Person Company is the only corporate entity that can be started and operated by a single promoter with limited liability. As a corporation, OPC has perpetual existence and easy transferability of ownership.

Separate Legal Entity A One Person Company is a separate legal entity with limited liability protection, but it has some limitations. In the event that the sole Director of an OPC becomes disabled, he or she must nominate a director to become the owner of the OPC. Limited Liability Protection In India, many startups have to borrow money or take out credit. Since one person companies have limited liability, only their business investments will be at risk, while their personal assets will remain safe.

As a result, if something goes wrong with the company or the company goes bankrupt, the directors' assets are protected. The property and personal savings of proprietorships and partnerships are at risk if you feel you must pay the bank debts or loans. This is the right choice for you if you wish to start your own company as a single individual.

Enable Funding’s APC helps startups in India test their business model, and once they have successfully built market products, they can approach angel investors. From angel investors, they can obtain funds based on their successful products.

Owning Property The OPC operates as a separate legal entity with limited liability protection, so as long as the OPC is in business, it cannot make any claims on its property.

Due to the fact that you are the sole owner of the company, you can take quick decisions and take action quickly.

Uninterrupted Existence If the sole Director of the OPC becomes disabled, a director must be appointed who will become its owner. Therefore, the OPC has 'perpetual succession', which means that after the death of the owner, the company continues to exist. It continues to exits.

Easy Transferability OPCs can be easily transferred to another person. Simply transferring shares can transfer the business to a new owner. Shareholdings, directorships, and nominee directorships in an OPC can be changed to transfer ownership.

Easy to Sell OPC

There is no other company that is as easy to sell as OPC. Selling a one-person business involves very little cost and documentation.

Audit Not Required Small and startup businesses benefit from OPCs. No audit is required for entrepreneurs earning fewer than 40 lakhs a year. Being able to own a business is an advantage for startups in India.

Cost Required The costs of starting your own business are lower than those of setting up a private limited company or LLP. Company formation requires a minimal cost, followed by private limited and limited liability partnership formation.