Description
One person company provides the best of two words, complete freedom and status of separate legal entity. Best suited for small size businesses wherein paid-up capital is limited to Rs. 50 Lakhs and an average turnover immediately preceding three financial years should not exceed Rs. 2 crores.
The primary reason for choosing One person Company (OPC) registration is that the given person has a business idea that needs to be represented in a corporate format. The idea can solely be carried out by the same person with limited resources they have. OPC company can have more than one director, but the shareholder cannot be more than one, and also no person shall be allowed to incorporate more than 1 one-person company.
Benefits:
- Limited liability
- Continuity of existence
- Business credibility
- Ease in fundraising
- Less Compliance
- Quicker action
Others points
- A natural person who is a citizen and resident of India can only be a member and nominee of OPC.
- A person can’t be a member of more than one OPC.
- A minor can neither be a member or nominee nor can hold interest in OPC.
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