Hidden advantages of One Person Company that everyone should know

A Story by TaxHome

One of the best companies that can provide you all kinds of business solutions is Tax Home. They have a team of dedicated professionals that will help you to get the OPC registration for your company

One Person Company means a company which has only one person as a member. It was introduced first time in The Companies act 2013. There are a lot of more reasons, which we are going to discuss in this article to convince any entrepreneur or business entity to opt for One Person Company registration.

Before choosing for One Person Company registration, one should know its advantages. Through this write up, you will completely understand what actually One Person Company is and what its advantages.

What is OPC?

OPC stands for One Person Company, which requires only one person to carry on business with limited liability. This is the best form of business entity for small businesses. So, the business that has a turnover of less than 2 Crores can opt for OPC registration. If you have charitable objects like environment protection, education, research, social welfare, etc. then you cannot register for OPC. The member of OPC shall be deemed as the first director of the company.

Why choose OPC Registration?

Here are the reasons, why you should opt for OPC Registration. Advantages are as follows:

· A separate legal entity

OPC is a separate legal entity, so you can be an entrepreneur and run a business just like the way you want. You would not have to work under anyone or in partnership. Everything in business totally depends upon you.

· Easy funding

OPC business can raise funds very easily through venture capital, financial institutions, etc. and run their business to make it successful. OPC raise funds for graduating itself to a private limited company.

· Annual return filing

Only the director/owner of the company is liable for quick decision making. The annual return of the one person company is required to be signed by the director. The mandatory requirement of company secretary’s signature is not applicable to OPC.

· Single owner, single power

Only one owner can make decisions as well as control and manage the business without following any elongated process and methodologies like other big companies do. Only one person has the power to do everything in the business.

· Receive interests on late payments

OPC registered companies enjoy all the benefits under Enterprises Development Act, 2006, so any micro, small or medium company incorporated under OPC covered under this act. If a buyer or receiver receives any late payment, then he/she is liable to pay interest which is three times the bank rate.

· Minimum regulations

OPC registered companies have very little compliance burden as well as regulations as compared to other companies. So, OPC can easily focus on other functional areas for the growth of their business.

So, these were the common benefits of an OPC registered company. So, if you are planning to start a new company, then register as an OPC firm to enjoy all the benefits in your business. Choose a company, which can help you to get registered for OPC.

One of the best companies that can provide you all kinds of business solutions is Tax Home. They have a team of dedicated professionals that will help you to get the OPC registration for your company in a small period of time. They also provide LLP, Private Limited and SSI registration in Delhi. So, choose Tax Home for the best company registration services.