Advantages of One Person Company Registration in Coimbatore

One Person Company

The Companies Act, 2013 introduced the revolutionized concept of one Person Company in India for the entrepreneurs to start out their own venture by allowing them to make one person economic entity. One of the most important advantages of a One Person Company (OPC) is that there are often just one member in an OPC, while a minimum of two members is required for incorporating and maintaining a private Ltd. or a limited liability Partnership (LLP). As compared to a company, a one Person Company could also be a separate legal entity from its promoter, offering liability protection to its sole shareholder, while having continuity of business and being easy to incorporate. By this One Person Company Registration, we can get more advantages than the other form of businesses.


If you’re individual one who wants to start out your company and need to avoid the problems of partnership then you want to accompany One Person Company registration in India. It is one among the business formations introduced to assist individuals in running a business.

Following are the Advantages of One Person Company:

1. The very first merits of One Person Company are the difference between Private Limited Companies and One Person Company is that the method of acquiescence or compliance is uncomplicated due to providing the immunity.

2. No need to get a partner. Only one member is needed to operate this business structure.

3. If the ownership of company changes, there’s hardly any effect on an Organization.

4. Less Investment: To register One Person Company, you would like to possess a company’s bank account which should have a minimum balance which might be the maximum amount less as 5000.

5. It promotes the entrepreneurship in an individual. A person who wants to run a business without partnership, you’ll apply One Person Company Registration  in India.

6. Proprietorship has some issues like owners personal assets are at stake and if any misfortune happens, he must bear all the loss in while there’s nothing like this in One person company registration in Coimbatore . Your personal stakes are pretty much safe like private limited company.

7. But you would like to convert the One Person Company into private limited company if it exceeds the turnover of two crores or paid capital is quite 50 lacs.

8. It permits the easy loans available after the incorporation.

9. One Person Company only needs ROC filing.

10. The private assets also will be safe with from others.

On the other hand, OPC or a one person company may be a hybrid sort of business mashing the flexibleness or a sole proprietorship with separate distinct identity clause of a corporate body.

Following are some major cons of incorporating an OPC:

1. Suitable just for a reasonably smaller kind of business since One Person Company registration can have maximum authorized capital of fifty lakhs and its turnover when exceeds two crores has to be compulsorily converted into a Pvt Ltd invoking the clause of compulsory conversion which might increase the compliances costs. Most of the start-ups hurry with One Person Company and cross the turnover limit within a year.

2. Cannot voluntarily be converted to a Private limited company or Public Limited Company until two years of the date of incorporation.

3. Since a One Person Company is recognized as an organization consistent with Income-tax Act it might be taxed at a maximum marginal rate of 30% as applicable private Limited Companies.

4. Limited to just one shareholder, which means you can’t offer part ownership to the other person.

5. Not suitable for complex sort of businesses like NBFCs nor may be incorporated as a section 8 company(Company Not for Profit)

6. An OPC cannot raise funds by selling its shares and hence not preferred for start-ups.

7. It increases the compliance cost yearly because audit and other compliance are mandatory regardless of turnover.

8. It can’t be converted into a private limited company voluntary before two years from the date of incorporation.


If your start-up may be a relatively an easy business model which might sustain within a capital of fifty lakhs or if you’re trying to find a company business form, to start with, One Person Company would be an honest choice, since there are very fewer compliances to follow, no audit requirements and complete control over ownership.

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