Updated On May 15, 2024

By SaraNextGen

5 REASONS TO START ONE PERSON COMPANY INSTEAD OF SOLE PROPRIETORSHIP FIRM

If you are a startup and want to start a business without adding anyone in partnership and having a valid license & legal status, so you can start with one personal company (OPC). In this article, we...

• If you are a startup and want to start a business without adding anyone in partnership and having a valid license & legal status, so you can start with one personal company (OPC).

• In this article, we are going to discuss 5 reasons, that why you should Register an OPC.

• 1. Only One Person can Start the Business-- As the name suggests, "One Person Company" it can be started by a single person only and no need to add more person like a private limited.

• 2. Limited Liability Protection-- One person company is a legal person in the eyes of law and has limited liability, which means the owner has to pay up to the extent of his outstanding amount towards its shareholding.

• 3. Easy Conversion into Private Limited Company-- One Person Company is already a company which is incorporated by a single person, in the expansion of business and need of raising funds, it can be converted easily into a Private Limited Company.

• 4. Can use the word " (OPC)PVT LTD"-- One Person Company can use the word "(OPC)PVT LTD" at the end of its name as per the provisions of Companies Act,2013.

• 5. Start-up India Registration-- One Person Company has the power to raise funds from venture capitalists and angel investors and it can be registered with start-up India with its unique business model for many benefits unlike a sole proprietorship firm and a partnership firm.

• Conclusion--

• If you want to start a business solely without involving someone, so one person company is the best suitable business with limited liability features instead of a sole proprietorship firm.

• About Vakilkaro

• Vakilkaro is an online Platform and Provides Legal Services across India like Corporate laws, Civil laws, Criminal Laws, etc. 

• Vakilkaro has expertise in various registration like Private Limited, Trademark Registration, Nidhi Company Registration, Section 8 Company Registration, Microfinance Company Registration, NBFC Registration.