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What is most suitable type of company registration, for a single person to start a start up?

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posted Jul 20 by anonymous

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1 Answer

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The idea of One Person Company (OPC) in India was introduced to give a boost to entrepreneurs who have great potential to start their own venture by allowing them to create a single person company. One of the main benefits for OPC registration is that only one member is required in an OPC, while a minimum of two members are required for forming and maintaining a Private Limited Company or a Limited Liability Partnership. Since an OPC is a separate legal entity it ensures protection to owner by limiting his liability, easy to set up and maintain comparatively.

Advantage of One Person Company

Limited Liability– Member’s personal assets are safe and liability of members is limited to the assets of the company.
Separate Legal Entity- A private limited company is a legal entity and a juristic person established under the Act.
Uninterrupted Existence-A company has perpetual existence and stays unaffected by the death of any of its members or change in ownership.
Borrowing capacity- Banks and financial institutions prefer lending to a company rather than proprietary firms. So it is preferable to register your startup as a One Person private limited rather than proprietary firm.
Get your registration done through LegalRaasta. It is the online legal Service provider of all business related and offers effective and efficient services.

answer Jul 21 by Mukul Chag
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