One Person Company or OPC is a relatively new form of business structure in India, introduced in the year 2013. It was designed to encourage entrepreneurship and ease of doing business by allowing a single person to form and operate a company with limited liability. OPCs have become increasingly popular among startups and small business owners due to their simplified compliance requirements and low operational costs.

Here are some of the key reasons why OPC is a popular choice for company registration:

Limited Liability:

One of the primary advantages of One Person Company is that it offers limited liability protection to the owner. This means that the personal assets of the owner are protected in case the company faces any legal or financial issues.

Ease of Formation:

OPCs are relatively easy to form and require only one person to start a company. The owner can be the sole director and shareholder of the company, which makes the process of registration simple and straightforward.

Lower Compliance Requirements:

OPCs have less compliance requirements compared to other forms of companies like private limited companies. For instance, an OPC is not required to hold annual general meetings or file annual returns if it has a turnover of less than Rs. 2 crores.

Increased Credibility:

Having a registered company gives your business more credibility and can help you gain the trust of clients and investors. OPCs are recognized as a legitimate form of business structure in India, which can help build a positive reputation for your business.

Tax Benefits:

OPCs are eligible for tax benefits like any other form of company. They can claim deductions for expenses incurred for business purposes and are taxed at a lower rate compared to individuals.

Better Access to Funding:

Registered companies have better access to funding and can raise capital through various sources like angel investors, venture capitalists, and bank loans. Having an OPC structure can make it easier for startups and small businesses to access funding.

In conclusion, OPC is a great option for entrepreneurs looking to register their businesses. It offers limited liability protection, ease of formation, lower compliance requirements, increased credibility, tax benefits, and better access to funding. With its many advantages, OPC has become a popular choice among small business owners and startups in India.