Advantages and Disadvantages of OPC Registration
India is known for its business market in the world because it is growing fastest in the world. This is the reason why people moving towards investing in their own business by quitting their jobs. Many foreign companies and investors have entities in India.
With the help of this blog, we will discuss one of the most popular business structures and that is OPC registration. One Person Company is the fastest growing business structure in India. One Person Company registration in India was started in 2013. The OPC registration is only permitted to the resident of India. That means no foreigner can form a One Person Company in India.
If you are an entrepreneur who is full of energy, plans, tactics, investment, and other things that need to start a business then this blog will help you in making a decision whether you go for the Open Person Company registration or not.
Online OPC Registration in India, is one of the best ways to complete the registration process appropriately under the direction and support of experts in field.
What is One Person Company (OPC) Registration?
One person company registration is a business structure incorporation that comprises a single person as a shareholder. This business structure is introduced to encourage the people who are willing to start their business and handle it single handedly as owners. OPC has become one of the best ways for entrepreneurs to start & grow startups individually. A one person company is a type of private company and enjoys the benefits like separate legal entity, limited liability, and much more.
One Person Company registrationis the only way available for a single businessperson to register his/her company to start a business.
Let’s start with the benefits or advantages of online OPC registration in India and then we will discuss some disadvantages or we can say risks while entering into the business profession.
Advantages of OPC Registration
Here are the top reasons why you should go for the Open person company registration in India.
1) Convenient Registration Process
If you are up for register a company online in India as one person business structure, it is the best way to get your registration done without visiting any registrar's office. Online OPC Registration in India is very convenient and you can save your time and money in this process. You will get experienced professional support and advice to complete the process easily and faster.
2) Separate Legal Entity
Forming a One Person Company offers a separate legal entity that offers legal protection under the law and company ACT because you will be the separate entity from the incorporated company. This will protect you from personal lawsuits and corporate liabilities and protect your assets.
3) Being Small Scale Benefits Alot
One Person Company can enjoy the benefits that are provided to the small-scale industries. It includes easy funding from the banks, safety to a specific limit, the Interest rate would be low on interests, and benefits related to foreign trades.
4) Single Owner Benefits
There are many situations popup in a company where you have to make immediate decisions. Being a single owner, you can do it without any headache of discussing it with anyone else. You don’t need to hear or wait for suggestions from other shareholders or partners. It will help you to grow more and go ahead in the competition.
5) Credit Score Benefits
As a one person company owner, you can apply for a loan even if your credit score is low or bad. If the score of any one person company comes under the directions of norms then you can apply for the loan easily.
6) Benefits of Enterprises Development Act
One Person Company enjoys all the benefits that are mentioned under Enterprises Development Act, 2006 as the newly incorporated small, medium, or micro company. These benefits may include an interest rate on any of the late payments made.
If a buyer or seller receives any late payment then they will receive the interest rate which is around three times the rate of what the bank gives.
One Person Company can easily raise funds through venture capital, angel investors, financial institutions, etc. This can be done by graduating itself to a private company.
8) Value of Business In Market
If you register one person company in India, you can enjoy the privileges that private limited companies are enjoying in the market, and this increases your business value in the market.
Disadvantages of OPC Registration
There are some disadvantages of one person company registration in India but these are not new to an entrepreneur, these cannot stop you from having your own business. Let’s see those disadvantages.
1) Tax Rate
The firm will be treated as a private company, so the tax slab would be the same. It means if you are a one person company owner then you have to pay 30% tax on your profits.
2) Change Is Needed
One person company is a small business, if somehow for three consecutive years, your company’s turnover crosses the amount of 2 crores then the company will be converted into a private/public limited company or limited liability partnership company. But when we start a business, we don’t start it with the thought of keeping it small. By the time it will grow and benefits you.
3) You Are The Only One
You are the only one who is handling the company and business operations. Sometimes you will need someone’s help in making decisions but as mentioned above if you will handle the things at the beginning with calm and effort, you will see a big growth.
Hopefully, you have understood the things related to one person company registration in India. If you need a platform for safe and affordable one person company registration in India then you can visit or contact Expertbells professional counsellors.
Expertbellsis India’s leading online business services platform that helps in registering the company and completing other legal & regulatory requirements like Private Limited Company registration, PF Registration, MSME Registration, Income Tax Return, FSSAI registration, Trademark Registration, ESI Registration, ISO certification, Patent Filing in India at an affordable cost.