One Person Company is a type of modern business entity. It allows operating a corporate entity by a single entrepreneur with limited liability protection. OPC is also said as a combined package of a Sole Proprietorship business and a Company, borrowing the best of both worlds.
It came into existence after the Companies Act, 2013. The purpose of this type of business organization is to encourage startups. With this kind of business entity, any person can start business individually without thinking about other subscriber or shareholder.
A One Person Company comprises many benefits from a lower rate of Interest on loans to easy funding from the bank without depositing any security to a certain limit and many more. All these advantages work like a boon to any business in initial years.
Here are some insights of One Person Company; some of the points show the positive side and some show negative side.
In summary, it can be said that the concept of One Person Company is a perfect blend of goodness and badness. But it is still novel in India and an unfamiliar concept for many people.
It will take some time for people to understand this new concept. It provides a newer platform for small and mid-level entrepreneurs and provides legal protection to the unorganized Indian businesses.
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