One can term this era as an age of business where people come up with new ideas and try to monetize them. In the new era of the business where there is a rat race competition amongst the people to multiply the earning, where there is no finishing line, one requires to know well about the type of companies, and the types of proprietorship one can grab. In this article, one can be enlightened all about one person company.

What is one person company?

If a company has only one founder or promoter, then the company is known as one person company. This is abbreviated as OPC and is probably considered as one of the best ways to get a company started. This is considered as one of the milestone in the Company Act in the year 2013 which was successful enough to encourage the people out there to channelize the business idea they have thereby encouraging the self-employment amongst people which further added with more firmness to the backbone of the legal as well as the economic system of India. If you possess an OPC company, then you can get it registered. The one person company registration online is an easy process one can go for.

Few things to be considered while having pepping to have OPC

  • A natural person and a resident of India can have an OPC.
  • You cannot have more than one OPC rather you can be entitled as the nominee for only one OPC at a time.
  • There is a limit of the paid capital as well as the financial turnover of the company per annum which can be two crore rupees or 3 crores at a maximum. Beyond this, the OPC is lost.
  • The rules of OPC finds the non-banking financial institutions to be void and thus, it does not permit.

Advantages of OPC

  • Separate legal authority:

Who does not want complete authority? The one person company offers the owner of the company with all what an entrepreneur. You can grab a single control and dominance over the company.

  • Easy funding:

OPC can raise funds through the financial and the angel investors while graduating itself to a merely private limited company.

  • More opportunities:

One of the best parts of the one person company is this will eventually have a grab over more opportunities than in the normal case, and this is so because the liability of OPC is limited to the number of shares you possess.

  • Beneficial as recognized as the small-scale industries:

This is so because there are lower rates of interest on the small scale industries and thus one can manage the business by taking advantages of the methodologies.

So these were some of the things that one must know about the one person companies. The process of one person company registration is a simple one and hence considering all the above information one can prep whether it is feasible to have an OPC or not.