India Advocacy
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One person company means one individual who may be a resident or NRI can incorporate his/her business that has the features of a company and the benefits of a sole proprietorship.
Advantage of One Person Company (OPC) :
★ Liability: The most significant advantage of OPC is limited liability. The liability of the shareholder is limited to the extent of the unpaid amount of shares subscribed by him. This means that the personal assets of the shareholder are not at risk in case the company faces financial losses or legal liabilities.
★ Easy to form and operate: OPC is easy to form and operate as it requires only one person to set up the company. The compliance requirements for OPCs are also less compared to other types of companies, which makes it a popular choice for small business owners.
★ Separate legal entity: OPC is a separate legal entity, which means it has its own identity distinct from its owner. This enables the company to enter into contracts, acquire assets, and sue or be sued in its own name.
★ Better access to funding: OPCs can raise funds from banks, financial institutions, and other investors as it has a separate legal identity. This allows the company to leverage its assets and creditworthiness to obtain loans and other forms of financing.