Benefits of One Person Company in India
Benefits of One Person Company in India
A One-person company registration provides various advantages to entrepreneurs. These include more opportunities, limited liability and the ability to take risks in business without distressing or affecting their personal assets.
Easy Funding: One Person Company can raise funds through financial institutions, angel investors, venture capital firms and other such sources. Moreover, the company can also graduate itself to a private limited company, which has many benefits, such as increased trust and status of the organization.
High Reputation: OPCs have higher reputation in the market and are preferred by every large enterprise as they give a social recognition to the company. It also helps in building a solid brand name and creates trust among suppliers and customers.
Simple to Get Loan from Banks: It is easier for OPCs to get loans from banks as they prefer to lend money to these companies rather than proprietary firms. Moreover, OPCs do not have to worry about complying with different procedural formalities like annual general meetings, board meetings and cash flow statements.
Perpetual Succession: In the case of death or disability of the Director, the member would remain a sole member and the company will continue to function for as long as he/she is alive. This is unlike Sole Proprietorship which will dissolve in case of the death of a member.
OPCs are easy to register and can be formed under the Companies Act, 2013. To enjoy the benefits of this act, an individual must have at least a residential address in India. This is an important step towards encouraging entrepreneursand making them feel at home in the corporate world.
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