The main advantage of building up One Person Company is that the sole business owner is responsible for all the undertakings. The issues of the company have less risk and appreciate benefits like that of Private Limited Company. The business owner is solely the most authority for one Person Company.
As indicated by Section 2(62) of the Companies Act, 2013, OPC implies an organization comprising just a single person as an only member. All in all, it is an organization enrolled and kept up by a one person. Business people favor this kind of organization over Sole proprietorship with the goal that they can duplicate their organization to beat the intricacy looked in the sole proprietorship firm enrolment.
BENEFITS OF OPC
The benefits are as follows
Benefits of small-scale industry
OPC can have different advantages given to Small Scale Industries (SSI) like simple financing from bank and any security to a particular cut off, a lower loan fee on advances, and OPC can likewise have different advantages under Foreign Trade strategy and other related strategies.
Single owner is useful as analyzed in having more than one owner. It is exceptionally ideal in settling on a snappy choice, overseeing business with no obstruction, or any recommendations from the other individual. The feeling of having a place persuades to develop the business.
Tax benefits FOR OPC COMPANY
INCOME TAX RATE FOR OPC – 30%
SURCHARGE-7% – total income exceeds INR 1 crore but less than INR 10 crore. 12% – total income increases INR 10 crores.
TAX IS CHARGED AS DOMESTIC COMPANY
DIRECTORS SALARY IS CONSIDERED AS COMPANY EXPENSES
MINIMUM ALTERNATIVE TAX(MAT) IS TAXABLE.
On the off chance that a company is a private limited company; One Person Company can raise funds with the help of venture capitalists, blessed messenger speculators, monetary organizations and so forth Any OPC can raise subsidizes hence graduating itself to a private company.
Increase in Trust and status
Any business which runs in the form of the company always enjoys an increased trust and status.
The entire process can be overwhelmingly hard, it is highly recommended taking consultation before making any move to register your business.