OPC Or One Person Company: Things You Need To Know
There are diverse formats and kinds of companies in the current day business world. Well, which kind of company you are seeking to invest in? Certainly, in case you are looking forward to start a business, you must definitely look into the options and the perks every option that you get.
Speaking of OPC, it is all over the trend. The point is formation of one person company is on the constant rise. Once you are sure that you want to go for this, you can register it easily and effectively. Talk to the professionals and they are going to help in the registration and the whole procedure.
To be more precise, the Companies Act, 2013 completely revolutionized corporate laws in the country and it introduced diverse new concepts that were not before. On such game-changer was the impression of OPC concept. The concept headed to the recognition of a completely new way of starting businesses that reduced flexibility that a company made up of entity can offer, while also offering the protection of limited liability that sole proprietorship or that of partnerships is short of.
OPC ins simple words
OPC has been taken as a company that has simply one person as its member. Moreover, members of a company are nothing but they are kind of subscribers to its memo of association, or that of its stockholders. So, a OPC is effectively and efficiently a company that has only one shareholder as its member.
These are the types of companies that are generally formed up when there is simply one founder or that of promoter for the entire business. Entrepreneurs whose work and businesses depend in initial stages prefer to choose OPCs instead of sole proprietorship business because of the diverse perks that OPCs cater.
Clear difference between one Person Company and Sole Proprietorships
A sole proprietorship kind of business might seem quite similar to OPC simply because they both include a single person owning the whole business, but there actually are a few variations between them. The main difference between the two is their overall nature. The nature of liabilities these both have is different.
Since a OPC is a separate legal entity differentiated from its promoter, it has its own properties and liabilities. The promoter is never personally accountable to pay the debts of the company. On the other side, sole proprietorships as well as their owners are the same individuals. So, the law allows attachment and sale of promoter’s own assets in the instances of non-fulfilment of the liabilities of the company.
So, the point is it is time that you try out this concept of business. You may find it more effective and powerful for your venture. You can check out one person company and who knows you find it really productive and effective for your business. Once you explore the different types of companies and business types; you would see OPC is certainly a good choice to go for. Once you tr it out, you would say it for yourself.