Start a One Person Company
@  ₹3,499*

You can enjoy several advantages by starting a One Person Company, including:

1. Less compliance: Although an OPC is required to comply with provisions applicable to private limited companies but it has been provided with a number of exemptions and therefore has a lesser compliance-related burden.

2. Organised sector of proprietorship company: The OPC transforms the unorganised sector of proprietorship into the organised form of a private limited company. Various small and medium-sized businesses operating as single owners can now enter the corporate realm.

3. Separate legal entity: An OPC is considered a separate legal entity from its owner, allowing it to enter into contracts, borrow money, sue and be sued in its own name.

4. Limited liability: The OPC's liability is limited to the amount invested by the single Member. This ensures that the single Member's personal assets are not at risk in the event of a loss.

5. Ease of formation: The incorporation process for an OPC is similar to that of a private limited company but with fewer documentation requirements, making it relatively easy to set up.

6. Social recognition for your business: One Person Company is a Private Limited Structure which is the most popular business structure in India. This gives suppliers and customers a sense of confidence in business. Large companies prefer to deal with private limited companies instead of proprietorship firms. This helps the entrepreneur to attract a quality workforce and helps to retain them by giving corporate designations, like directorship. These designations cannot be used by proprietorship firms.

7. Easy to get loan from banks: Banking and financial institutions prefer lending money to a company rather than a proprietary firm. In most of the situations, banks insist the entrepreneurs to convert their firm into a Private Limited company before sanctioning funds. So it is better to register your startup as a One Person Company rather than a proprietary firm.

8. Single owner: Justifying the name, an OPC is literally owned by a single person. The responsibility of managing and running the business rests wholly on the sole Member. This leads to fast decision-making and execution. However, an OPC can have as many as 15 directors.

9. Easy to manage: In an OPC, as there is only one member, the coordination, organization and management between various Members/Directors is not required, making it easy to run the Company in a hassle-free manner.

10. Perpetual succession: An OPC enjoys continuous existence until it is dissolved statutorily. In case of death or departure of the sole member, the appointed nominee continues to operate and run the business.

11. Tax flexibility and savings: In an OPC, it is possible for a company to make a valid contract with its member/director. This means as a director you can receive remuneration, as a lessor you can receive rent, as a creditor you can lend money to your own company and earn interest. Directors’ remuneration, rent and interest are deductible expenses which reduces the profitability of the Company and ultimately brings down taxable income of your business.