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One Person Company Registration Made Ease

This document briefly explains one-person company registration and its advantages and disadvantages.

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One Person Company Registration Made Ease

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  1.   One Person Company Registration Made Ease.    In India, a one-person company is one of the simplest entities of a corporate entity to manage.OPC is a combination of a sole proprietorship and a corporate form of business. Under the Company Act, it has been provided various exemptions for many compliance requirements. In comparison with private companies, the compliance requirements are lower in OPC.OPC registration is easy and affordable.           For entrepreneurs and sole proprietors who wish to enjoy the perks of limited liability and separate legal entities, OPC registration provides new business opportunities.OPC eliminates the hassles of choosing the right partner when launching a new business as   a registered entity.       Advantages Of One Person Company   1 Legal Liability:Similar to  other Company Structure,OPC offers limited liability protection to its sole member,ensuring that their personal assests are secure incase of   business liabilty.     2 Easy to Use:OPC is formed and maintained by single person,its operation simple to manage.Making decisions is easy and decision making process is quick.Ordinary and special resolutions can be passed by single person by signing them and noting in a book.As a result,managing and operating a company is simple,as there are no internal          

  2.   disaggrements or delays.   3 Indefinite Succesion:Even though OPC has a single memeber,its succession ,it has feature of endless succession.When integrating the OPC,a sole member is required to appoint nomineeWhen a memeber dies,.the candidate becomes company's president in   the event of death.       4.Compliances are lower:Under thre Companies ACT,OPC is exented from certain compliance requirements,It is not necessary for OPC to prepare cashflow statement.The director must sign the annual returns and book of accounts,company   secretary is obliged to sign.       Disadvantage Of One Person Company   1 Ownership and control: As only one member,serves as a director of the company.,there will not be seperation between  ownership and management.All the decision must be made and approved  by lone memeber. The distinction between ownership and control are getting blurred,hence results in unethical activities.         2.Applicable For Small Business:One person is suited for small types of business,To obtain more  funds OPC cannot recruit  more members.or share holders.As the company expands, more members cannot be joined.       3.Restricted Business Operations:OPC is prohibited from engaging in  non banking investment operations.,such as investing in ccorporate securities.operations.it cannot be changed to a charitable purpose under Section 8 of Companies Act.       Conclusion:   Thus,you can see the perks of OPC  has drawbacks,As we know each company and individual has its unique needs .As a result we must analyse and evaluate them before   making a Choice.      

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