Benefits of One Person Company in India

Benefits of One Person Company in India




One Person Company (OPC) is a new concept introduced by the Companies Act 2013. It is a new corporate structure that does not require two shareholders to form a company. The idea of OPC was inspired by the success of One Person Companies in Singapore and USA.

The Oneperson company is an ideal structure for small entrepreneurs who are starting their business. It helps them to get the benefits of a private limited company without having to comply with the compliance related burden.

1. Easily Available Credit Facility: Banks and other financial institutions prefer lending to a One Person Company rather than proprietary firms which means that they can lend you more money.

2. Simple to Get Loan from Banks: It is easier for a One Person Company to get loans as they do not require a separate statutory audit report.

3. Annual Return Filing: It is not mandatory to file an Annual return with the Registrar of Company, however it can be filed by the directors.

4. Deductions for One Person Company: Like proprietorship, remuneration paid to the director of the OPC is highly applicable as deductions in income tax.

5. Perpetual Succession: The One Person Company will have the feature of perpetual succession, which means that its existence will not be affected by the death of the shareholder or the transfer of shares to other members.

6. Sense of Belonging: The One Person Company creates a sense of belonging which motivates the owner to grow the business further.

7. Easy Funding: The One Person Company is a good option for Small Scale Industries to start their businesses as it can enjoy many advantages like lower interest rates, easy funding from the banks and various benefits under foreign trade policy.

8. Sole Decision Maker: The One Person Company has only the sole decision maker and he is responsible for all the affairs of the business. This is beneficial for the owners as they can make quick decisions without following any long processes and methodologies that are adopted in other companies.

9. Limited Liability: The One Person Company has a limit on the liability of its members as well as the shareholders. This limits their risk and makes it more difficult for them to lose their Personal assets due to debts that the company incurred.

10. Easy to Incorporate: The One Person Company can be incorporated within 120 days of its inception, as opposed to the 182 days that are required for Proprietorship.

11. No Restrictions on Increasing the Paid-up Capital: The One Person Company can increase its paid-up capital at any time, as long as it continues to operate in the same manner.

12. No Restrictions on Changing the Name of the Company: The One Person Company can change its name at any time and this is another major advantage of the One Person Company.

The One Person Company has a number of other benefits as well. For example, it can enjoy a number of other incentives and benefits as a Micro, Small, or Medium business under the Enterprises Development Act 2006.

Tel:+917299972500 

info@filingpoint.com

 

Comments

Post a Comment

Popular posts from this blog

How to Create Software Company Registration in Perungalathur, Kanchipuram

Image
Call our filing point expert at +91 72999 72500 or visit https://filingpoint.com   Introduction   Starting a software company in Perungalathur, Kanchipuram, can be a rewarding venture, especially with the expert assistance of Filingpoint. With 14 years of experience in company registration , Filingpoint offers free consultation and a comprehensive registration service for just Rs 999.   Steps for Company Registration:   1. Consultation: Begin with a free consultation from Filingpoint. Their experts will guide you through the process, ensuring you understand all requirements and legalities.   2. Name Reservation: Select a unique name for your company. Filingpoint will assist in verifying and reserving the name with the Ministry of Corporate Affairs (MCA).   3. Digital Signature Certificate (DSC): Obtain DSCs for the directors of the company. This is necessary for the online filing of documents.   4. Director Identificatio...
Read more

How to Start Software Company in Arani, Tiruvannamalai

Image
Call Our Consultants Experts for Software Company Registration in Arani at +91 72999 72500 Introduction: Starting a software company in Arani, Tiruvannamalai, can be a rewarding endeavor given the region's growing technological infrastructure and talent pool. To facilitate this process, Filingpoint offers an affordable and streamlined company registration service for just Rs 999/-.   1. Business Plan Development: Begin with a robust business plan. Outline your company’s vision, mission, target market, competitive analysis, and financial projections. This plan will serve as the roadmap for your business and is crucial for attracting investors and partners.   2. Choose Your Company Structure: Decide whether to register your company as a Private Limited Company, Limited Liability Partnership (LLP), or Sole Proprietorship. Each structure has its own legal and tax implications.   3. Register Your Company with Filingpoint: Leverage Filingpoint’s exp...
Read more

Who Can Apply For MSME Registration in India

Image
Who Can Apply For MSME Registration in India Micro, small and medium enterprises (MSME) are the backbone of developing economies such as India. They account for 45% of the total industrial employment and contribute to 95% of all the manufactured exports of India. If your enterprise meets the criterion to register as an MSME, it can reap several benefits such as easier access to credit and tax exemptions. Government tenders are reserved for registered MSMEs , which reduces competition and helps your business grow. Additionally, MSMEs are protected against delayed payments from buyers. The eligibility criterion for applying for MSME Registration is based on your business' investment slab. Entities that invest up to Rs 1 crore are eligible for micro-entity status, while entities that make investments of up to Rs 5 crore are eligible for the small and medium category. If you want to register your enterprise as an MSME, you can do so online by filling up the Udyo...
Read more