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 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.

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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.