Benefits Over One Person Company Registration in Coimbatore
As the name suggests, a one person company (OPC) is a Company who has a single member, but has its very own existence. One Person Company is a boon to all those owners and budding entrepreneurs, who are inclined to start a business, with enough ideas and inadequate funds. In this article, we have to see the benefits of one person company registration in India.
Even although a one person business enterprise does have certain advantages in comparison to a personal limited company, If you are salaried man or woman and just beginning a side business, higher go for proprietorship as it is a good deal easier to start, hold and close. Once you’re convinced approximately the viability of the business, then you may turn it into a one person company in case you desire.
The Companies Act, 2013 brought the idea of One Person Company in India for the marketers to start their own task by letting them create a single person monetary entity. One of the largest blessings of a One Person Company (OPC) is that there can be handiest one member in an OPC, at the same time as a minimum of members is required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership (LLP). Similar to other Company registrations, a One Person Company is a separate legal entity from its promoter, which supplying restrained liability protection to its sole shareholder, while having continuity of business and being easy to incorporate for the budding entrepreneurs.
If you’re the simplest one who desires to start your organisation and want to avoid the problems of partnership then you need to go together with One Person Company registration in India. It is one of the business formations introduced to assist people in going for walks a business.
There are many benefits of a One Person Company which may be enumerated as follows:
• Member – Only one member required
• Nominee – Required in case of dying or incapacity of single member
• Separate Existence – Member and Company exists separately – Existence of the Company isn’t always tormented by the demise or incapacity of member.
• Income Tax – Unlike proprietorship, tax liability of the business enterprise and single member is independent.
• Exemptions underneath the Companies Act, 2013 – Notices of the Meetings, Quorum for Meetings, Appointment of Chairman of Meeting, Proxies Restriction on Voting Rights, Voting by using Show of Hands, Voting via Electronic Means, Demand for Poll, Circulation of Member’s Resolution are a number of the exemptions granted to OPC.
• Conversion in to Private Limited – Voluntary and with sure limits, mandatory.
• Loan and Investment – Easily available
So if you are taking into account registering a One Person Company, you then are on the right track.
Benefits of One Person Company:
1. The very first benefit of One person company, the difference between Private Limited Companies and OPC is the technique of acquiescence or compliance is uncomplicated because of supplying the immunity.
2. No want to get a partner. Only one member is required to run this enterprise formation.
3. If the possession of employer changes, there may be infrequently any impact on the employer.
4. Less Investment: To check in One Person Company, you want to have a bank account which have to have a minimum stability which will be as much less as 5000.
5. It promotes the entrepreneurship in an individual. A character who wants to run a commercial enterprise with none partnership, you may practice OPC in India.
6. Proprietorship has some troubles like proprietors private property are at stake and if any misfortune happens, he needs to bear all the loss while there may be not anything like this in OPC registration. Your personal stakes are very much secure like in non-public limited organization.
7. But you want to convert the OPC into a personal limited enterprise if it exceeds the turnover of two crores or paid capital is extra than 50 lacs.
8. It allows the clean loans to be had after the incorporation.
9. OPC handiest desires ROC filing.
10. The private property will also be secure with from others.
On the other hand, OPC or a one person company is a hybrid form of commercial enterprise mashing the ability or a sole proprietorship with separate distinct identification clause of a company body.
1. Compliance burden
The One Person Company (OPC) consists of into which means of “Private Limited Company”, given below phase 2(68) of the Companies Act, 2013. Subsequently, an OPC will be required to conform to procurement applicable to private confined companies. On the other hand, One Person Company has been given numerous exclusions and, in this way have a lesser compliance-related burden.
2. Perpetual Succession
A One person Company being an included entity, will likewise have the element of perpetual succession and will make it less difficult for marketers to elevate capital for commercial enterprise. The OPC is a separate legal entity from its proprietor. Creditors ought to, therefore, be warned that their claims against the business can’t be squeezed towards the proprietor.
3. Simple to Get Loan from Banks
Banking and economic institutions choose to lend money to the employer instead of proprietary firms. In a massive portion of the circumstances, the marketers to transform their corporation right into a Private Limited company earlier than authorizing funds. So it is ideal to sign in your startup as a One Person company as opposed to a proprietary corporation.
4. Annual return filing
One Person Company’s yearly go back is required to be signed through a director. The obligatory requirement of Company Secretary Signature does not apply to OPC.
5. No prerequisite to preserving annual or Extra-everyday General Meetings
Just the resolution is probably conveyed by using the member from the organization and entered in the minute’s e book and signed and dated through the member, and the sort of date need to be taken into consideration to be the date of the meeting.
6. Board Meeting
One Person Company may lead at least one assembly of the Board of Directors every 50% of a calendar year, and the gap between the two meetings shall not be less than ninety days.
We “Solubilis Corporate Services” are the registered Company Secretary and Trademark Attorney and Patent attorney in Chennai, Coimbatore, Bangalore, Hyderabad, Cochin, Salem, Madurai, Trichy, Tirupur and Karur. We have the team of well-experienced members to do your One Person Company Registration in Coimbatore, Chennai, Bangalore, Hyderabad, Cochin, Salem, Madurai, Trichy, Tirupur and Karur. For more details, kindly go through our website and contact us. Our experts are just one call away from you. Thanks for reading!!!