Why a startup firm should choose One Person Company as a form of business?
Posted: Jul 27, 2017
We all know, opening a startup business is a tough task. It is an innovative category of a businessman, who wants to grow rapidly. One needs to raise capital in a timely manner, if he/she wants to see their business growth in a short span of time. If you want to use your innovation with freedom in your business, then choose the OPC form of business for your startup firm.
There are many reasons that can loudly say you should register your startup business a one person company. Before knowing these reasons, we will first discuss what OPC is. OPC stands for One Person Company, which is the latest form of business launched in the year 2013. OPC can be formed by a single owner/founder with at least compliances & maintenance. So, let’s discuss why businesses should opt for One Person Company registration in Delhi.
1. Smooth funding
Getting funding for a startup firm seems tough, but if you are registered as an OPC firm, then getting funding is relatively easier for an OPC. You can manage funding from financial institutions, angel investors, etc. You can gradually work to give success to your business and turn itself into a private Limited Company. The owner of OPC can go the extra mile without caring for the liabilities.
2. A separate entity in law
One of the major benefits of opting for an OPC is that according to the law a separate legal entity is created and it means that the company is legally equipped to do almost everything that a person is allowed to do with a legal entity. If you want a separate entity for law, then opt for OPC registration for your startup firm.
3. Easy hiring
The most difficult part of establishing a startup business is building a good and reliable team of employees. As per the research, it is easier to hire people in a registered OPC firm than under proprietorship firm because a proprietorship firm is not a registered form of business and has no legal assistance. So, register your startup firm for OPC and build a strong and reliable team of employees.
4. No minimum capital amount required
To register for OPC, no one requires a minimum capital amount, you can choose as per your capacity. If you have Rs. 5000/- in your pocket and want to start up business, then you are allowed to register for OPC in India.
5. Free from the hassle of credit limit
Being an OPC, you can file for loan, as the credit limit of the owner does not affect that. If your credit limit is not that great, your OPC registered company is still be able to generate good funds that you can use for the betterment of your business.
So, these are the benefits of being an OPC. If you want to register for small and startup business, then register for OPC. Choose Tax Home for one person company registration in Delhi. They are leading legal consultant in Delhi that will help you in your legal needs. If you want private limited, LLP and MSME/SSI registration in Delhi, then choose Tax Home, as they will provide you affordable services.