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ADVANTAGES & BENEFITS
Director’s personal assets have limited liability protection
Startup tends to borrow money and lay hand on the credit. Normal Partnerships comes under heavy risk in terms of personal savings and property if in case the business fails to repay its loans. In one person private limited company, business investment goes in loss whereas person assets of the director remain safe.
Market embarks with better credibility and image
OPC have created its name well and it has grown into a well business structure. OPC in India is a private Limited Company. Corporate Customers, Vendors and Govt. Agencies tend to choose Private Limited Company over proprietorship firms.
Simpler to use funds and loans
OPC is considered to be one of the easiest forms of company entities in terms of controlling. ROC filing with Registrar of Companies is very few. There are no requirements to conduct Annual General Meeting (AGM) and other regular compliances.
Helps in Testing of Business Model and Enable Funding
Business model are easily tested by the Entrepreneurs with the help of OPC business. By building a marketable product, they can proceed towards Angel investors, Venture capitalists in terms of funding and then just simply convert their OPC into multi shareholder Private Limited Company.
A single owner have a complete control of the Company
This has a direct approach towards decision making and execution. However, OPC have full capacity of appointing as many as 15 directors for administrative functions, without sharing any share with them.
Selling OPC is simple
The costing of OPC Company lies only on selling an One Person company. It has very less documentation and is very easy to sell indeed.