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One Person Company (OPC) Registration
Are you prepared to launch your business on your own, without the help of others? Be at ease! The Companies Act of 2013 brought about a new concept in India: the One Person Company (OPC). The Company’s Act of 2013 allows a company to be founded with just one director and one member, as stated in section 2(62).
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The member and the director may be the same individual. It’s a type of business where there are fewer compliance standards than with a private corporation. As a result, one person, who may be a resident or an NRI, can incorporate their business to benefit from both the qualities of a company and the advantages of a sole proprietorship.
Why delay any longer? Sign up for Licit 360 Person Company right now! From paperwork to document verification, our knowledgeable staff will take care of everything for you, allowing you to relax knowing your company is in capable hands. With Licit 360, launch your business and take the first step toward success!
Advantages
Restricted Liability
The primary benefit of OPC registration is that it offers the only member limited liability protection. This indicates that the member's personal assets and the company's obligations are distinct. The member's personal assets are safeguarded in the event of any monetary losses or legal obligations.
distinct legal entity
OPC and its owner are considered as distinct legal entities. It is independent of any individual member and has its own identity. This lends legitimacy and improves the company's reputation, which facilitates contract signing, capital raising, and the development of business partnerships.
Bank loans and simple financing
When it comes to bank financing and funding, OPCs are more favored than partnerships or sole proprietorships. Investors and financial organizations are more inclined to lend money to OPCs because they perceive them as more reliable. OPCs have the choice to offer shares to investors in addition to raising capital through debt or equity.
Minimal Compliance Requirements
Compared to other types of companies, OPCs have relatively fewer compliance requirements. They are exempted from certain statutory obligations applicable to other companies, such as holding annual general meetings (AGMs) with shareholders.
Single-source management and ownership
OPC permits one person to establish and run a business. Entrepreneurs who wish to launch a company independently without the need for extra investors or partners may find this advantageous. The operations and decision-making process of the business are entirely under the solitary member's authority.
Constant Succession
The permanent succession clause in an OPC registration guarantees that the business will survive the death or incapacitation of its owner or promoter. To maintain business continuity, the company's shares may be transferred to a nominee listed in the incorporation documents.
Benefits of Taxation
OPCs have a few tax advantages. They are qualified for privileges, exemptions from taxes, and other advantages granted to other kinds of businesses. OPCs may save money on taxes because their tax rate is the company tax rate rather than the individual tax rate.
Simple Conversion
An OPC may be changed into a private limited company as it expands, which has extra advantages including greater cash and more shareholders. The conversion procedure is simple to follow and offers room for growth in the future.