One of the questions I frequently receive from entrepreneurs who are the sole proprietors is whether or not they are eligible to register a private limited company.Although people are unaware of it, they continue to be curious about register one person company (OPC).
The people who are single proprietors and wish to begin a business can pick One Individual Organization (OPC) as their business structure.
The ten reasons why you should register an OPC as your business structure are outlined below.
Body Corporate was introduced in 2013 and is a one-person private limited company by definition.Because a body corporate is a separate legal entity, if there is a case, the company, not you as an individual, will be held liable.
Mr. A, for instance, got hurt using your product, so he can now sue your company. However, because you work for a different legal entity, he can’t sue you personally.
No Minimum Capital Although the law was repealed in 2014, many individuals are still unaware of it.The registration of one-person companies (OPCs) does not require a minimum capital.You can choose based on your capacity if you want to.
For instance, you can start a business with Rs. 5000.
This is one of the most widely held myths, “No High Cost for Compliance.”To begin, OPC businesses offer the greatest degree of freedom.
Additionally, despite the fact that you could spend up to $10,000 annually on OPC compliances, you will receive a proper legal file that will assist you in applying for loans, credit cards, credit limits, tenders, and other financial services.
Easy funding The majority of people are unaware that loan funding is determined by Cibil scores, and obtaining a loan may be challenging if your Cibil score is low.However, if you have incorporated a business, the OPC cibil score will be evaluated; consequently, your cibil score is irrelevant if your company’s cibil score prevents you from obtaining funding.
Easy hiring Research has shown that it is easier to hire people in a private company as opposed to a sole proprietorship because the most difficult part of starting a startup is building a good team.
Because they are not registered business forms, sole proprietorships do not have a legal existence.As a result, start a business and form a team.
Easy conversion into a Private Limited Company After OPC is established, a Private Limited Company can also be established.
The OPC can easily become a private company by filing a single form.Between the two occurrences, there must have been at least two years.
Minimum requirements for OPC registration In India, registering a one-person business is a simple process.These are the requirements:
There must be a founder and a nominee.The nominee takes over when the company’s sole owner passes away.
PAN cards, Aadhaar cards, and bank statements are required for the owner and nominee.
To enlist the organization, where it will be found will require an electric bill and a testament of inhabitance.
At Hubco.in, OPC registration costs only Rs. 11,000 (all-inclusive), and the company can be up and running in 5 to 8 days, depending on how quickly you provide the necessary paperwork.
One-Person Corporations (OPCs) that have a turnover of at least Rs. 2 crore and a capital of at least Rs. 50 lakh must be converted into Private Limited Companies by filing a single form.
Benefits of being a MSME The registration of a MSME is open to anyone, but if you register as a private limited company, you will almost certainly be able to get loans quickly.
What are the advantages of lower-interest MSME loans?
Banks lend money to certain priority sectors at a lower interest rate.The Save Bank of India (RBI) goes with these choices.One of the priority sectors for loans is Micro, Small, and Medium-Sized Enterprises (MSME).
Recognition on a Global Scale Exporters are well aware of the difficulties associated with starting an export business due to the distrust experienced by foreigners.
OPCs are therefore private limited companies by nature, and their inclusion in government databases facilitates international trust building.