Benefits of One Person Company in India

Benefits of One Person Company in India

 


The Companies Act, 2013 revolutionized the corporate laws by introducing new concepts such as One Person Company (OPC). This concept is a recognition that a single person economic entity lightens a path for small traders, service providers to venture into business.

Unlike the traditional way of having at least two members, One Person Company only requires a Director and one member. This is an ideal structure for professionals, small single entrepreneurs, SMEs and NGOs - with minimal compliances and the ability to insulate shareholders' personal assets from liability.

More Opportunities – A One Person Company can take more risks without suffering from the loss of their personal assets. This is possible because a One Person Company is treated as a separate legal entity in the eyes of the law.

Lower Compliance Burden – A One Person Company has to comply with only the provisions of the Companies Act that apply to private companies and also enjoys certain exemptions. This helps them to focus more on other functional and core aspects of their business.

Sense of Belonging – A One Person Company offers a sense of belonging that inspires people to take the next step towards growth and success. This is a key factor for many entrepreneurs who are "refugees" from the larger corporations.

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