Benefits of one person company Registration

Benefits of one person company Registration

One person company is regulated under the Companies Act, 2013 to unleash the ideas and zeal to fulfill the ambitions of entrepreneurs that serves as a great deal of support towards the country’s economic growth.

Many of us have those bubble ideas that could create a history upon the proper execution; however, we always take a step back thinking that it might not be possible to convert that thought into imagination. Even so, those days are gone, when you needed a large manpower and a big office space for accommodation and further investment to keep your company afloat in today’s market.

With the introduction of the concept of One Person Company, you can start your business on your own, being the sole flag bearer to have total control of the functioning and operations of the company.

One person company registration allows a solitary entrepreneur to run a business as a legal entity with limited liability.

What are the benefits of one person company registration?

Lone Booster

One person company is operated under the ownership of a single individual. There is no need to look out for people or make a team get your business started. You can begin your business journey on your own and make it worth. You work as a single promoter of the company with limited liability protection.

Limited liability

If you have started a one person company, then you will have the benefit of limited liability protection. Limited liability protection makes sure that if the company suffers from any kind of financial loss and goes into debts then you will only be liable up to the share of investment made in the company; your personal assets will not be touched to repay the losses.

Transferability

For transferring the ownership of the company, you do not have to follow the long and tedious procedures. If in any case, you want to transfer the ownership of the company then you just need to transfer the shares of the company to the new owner of the company. Apart from this, you are required to fill the few transfer forms and share certificates.

Acceptance of loan

As we know that one person company registration is considered to be a legal entity and enjoys the tag of being called a company that leads to the banks and financial institutions to give preference to them over the partnership firms during sanctioning the loans.

Property ownership

These types of companies can own a property on its name; the property could be machinery, building, intangible assets, land, residential property, factory etc. And one person company can give up or transfer that property to someone else at any time. Director of the company cannot claim upon the property owned by the company.

After looking upon the benefits and way of the function of these types of companies; if you are one of those who has already made their mind of starting the one person company. Then there are a few documents that you need to consolidate before filing the application of registration.

List of documents for the registration of one Person Company

• You need to provide the identity proof of director and nominee director, it includes PAN of main director and nominee director; both must be Indian Nationals.
• Further, you have to submit the Address proof of director and Nominee director that would comprise Passport, Driver license, Aadhar, bank statement or electricity bill.
• If you have an office space then you will be asked to provide the proof of registered office in India such as Rental agreement or sale deed and a copy of an electricity bill, property tax receipt, no objection certificate from the landlord.

You must provide the valid documents to let your application for OPC registration approved. For more info visit 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.