Advantages of one person company Registration

One Person Company

One person company allows you to operate the business as a single entrepreneur with limited liability and also considered to be the legal corporate entity. The Concept of one Person Company is regulated by the Companies Act, 2013, that extends its support to individuals who are capable to kick off the new venture on its own.

The best feature of one person company incorporation is that it only requires a single individual to begin the journey of business, while other forms of companies needs the involvement of at least 2 members.

Depending on the government’s process time and if all your documents are in place then it takes around 10-15 days for the registration of one person company.

What are the advantages of one Person Company?

Following are the few perks if you are thinking of setting up a one person company-

Independent legal entity

One person company is considered to be the separate legal identity and allow fulfilling the dreams of all the entrepreneurs. Who was not able to convert their business ideas into reality earlier, before the one person company Act was introduced.

If you have an idea to start a business, then don’t stress yourself, your idea will not be lost in the fray. You will definitely start working on your idea as One Person Company, and Swarit advisors is here to help you. Even before One person company registration, you may protect your idea by taking trademark registration through swarit advisors.

Fundraising

OPC falls under the category of private companies that lets it boost funds through venture capital, financial institutions, and angel investors etc, which ultimately help the company to grow.

Better chances of growth

Since you are the only owner of the company, all the decisions will be made by you. There would be nobody to oppose and you can always choose the best options for your company.

Limited liability

One person company offers the limited liability to the member in accordance with the share of investment in the company. This allows the owner to take the risks without putting its personal assets at stake.

This happens to channelize the talent of young and new entrepreneurs by providing them the platform to execute their ideas.

Fewer requirements

For the incorporation of one Person Company, you only require the following-

• Minimum 1 shareholder
• Minimum 1 director
• Director and shareholder can be the same person
• Minimum 1 Nominee
• OPC will be added after your company’s name to categorize separately from other companies, for example, if your company’s name is ABC then it will be written ABC OPC; that signifies that you are running a one-person company.

Small-scale Industry benefits

OPC can take advantage of benefits offered to small-scale industries such as lower rate of interest on loans and you can request the banks for the funding without having to deposit any security.

Sole owner

In comparison to other companies, OPC has quick decision makings, control and management without involving any stretched processes owing to the single ownership.

Credit rating

If you are running an OPC, then you can avail the loan from banks; despite the bad credit rating. If you maintain the rating of OPC as per the norms then credit rating of OPC will not be a hindrance in getting the loans.

Transferability

In the case of one Person Company, it is quite easier to transfer the ownership of the company. You just need to transfer the shares of the company by filing and signing the share certificates and forms.

Property on company’s name

One person company is treated as an artificial person that let the company own, acquires and sells the property on its name. The owned property could be machinery, land, residential property, factory, intangible assets etc. For more information contact us.

Swarit Advisors provide expert advice to entrepreneurs on all kinds of registrations, taxation, Ipo Advisory, financial advisory to start their business like NBFC Registration. Are you Looking for this service, then contact us.