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The major advantages of One Person Company are that the owner is solely responsible for all the affairs/matters of the company, has fewer liabilities, enjoys benefits similar to Private Limited Company, etc. The owner is solely the most powerful authority of that company. Incorporating an OPC offers a great number of advantages over other company types. In this blog, we are going to look at all of them.
As the name suggests it is a company run by only one person. According to Section 2 (62) of the Companies Act, 2013[1] One Person Company means a company consisting of only one person as a member. Generally, it is a company incorporated and maintained by a single person. Entrepreneurs choose this type of company over sole proprietorship to forge their company and to overcome the difficulties faced in the sole proprietorship firms.
A One Person Company (OPC) can only be registered as a Private Limited Company. Hence, all the provisions applicable to a private company will also prevail on a One Person Company (OPC) unless otherwise it is expressly excluded in the concerned Act or rules made there under. Further, a One Person Company can easily be converted into a Private Limited Company or a Public Company. It is significant to note that the word “One Person Company” must obligatorily be mentioned at the end of the company’s name.
The salient features of One Person Company are as follows;
*Note- the term resident of India represents a person residing in India from a period not less than 182 days
Following are the guidelines which are to be duly complied with before obtaining an OPC registration –
Following are the Exemptions granted to the One Person Company under the Companies Act, 2013 –
A-One Person Company holds numerous advantages over any other company types. The major advantages of One Person Company are as follows;
These are just a few advantages of registering a One Person Company. Incorporating such a company provides many more advantages.
A list of Disadvantages of One Person Company is given below;
Read our article:How to Setup One Person Company Formation in India
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