What Are The Advantages Of One-Person Company Registration?

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One-person company is the new concept for single proprietors to register as a private limited company. Now a one person company registration online allows single owners to form a legal entity. The sole owner was not allowed to register their business legally and was left only with proprietorship. Gone are the days when a minimum number of two members were required to register as a private limited company. 

The government has introduced a new business concept for single proprietors with the Companies Act 2013, which allows entrepreneurs to register their businesses legally. Nowadays, single entrepreneurs can enter the corporate world with a legally recognized entity. Thus, the corporate industry is experiencing huge success in India. This concept provides multiple advantages for sole entrepreneurs to run their businesses successfully. In this blog, we shall discuss the advantages of one-person company registration.

  • Legal status: The foremost advantage of one-person company registration is the legal status. OPC registration gives a legal entity of the private limited company to the business. A company requires legal identity to create recognition in the market and influence consumers. Also, suppliers easily trust a legally authorized company over proprietorship firms. Therefore, legal status is essential for entrepreneurs to create an identity in the corporate world. Even large enterprises select legal corporate structures to deal with. So, legal status is crucial to run your business in a large market.
  • Limited liability: One of the striking benefits of OPC is limited liability. Since a one-person company is a registered company with a separate legal entity gives better protection to the shareholders and members. Ups and downs are part of a business. If the company faces heavy losses, the members of the business are not liable for that. 

Therefore, the member’s or the director’s assets are not at risk. In such situations, the creditors can take legal action against the company but cannot sue the director of the company. Thus, OPC provides the advantage of limited liability for directors and shareholders to protect their savings and wealth.

  • Minimum requirements: Entrepreneurs need very less requirements for incorporating an OPC. Unlike other legal entities, OPC demands minimum requirements from the proprietors. With a minimum number of one shareholder and one director, OPC allows your business to become a registered business structure. The best part is a single person can be the director and shareholder too. A minimum of one nominee is required. Unlike private limited companies and public limited companies, entrepreneurs require a minimum share capital of one lakh rupees. Therefore, an OPC registration can be acquired with minimum requirements and investments.
  • Easy operating facility: The one-person company is an easy-operating business structure. Since the compliance requirements of OPC are minimal, every OPC can fulfil the required compliances very easily. OPC does not require annual general meetings or extraordinary general meetings as there is only one member in the company. 

Therefore, the member of the company has to make a resolution and enter the time and date in the minute book and sign it. Thus, the date will be taken as the date of the meeting. Moreover, the one-person company conduct just board meeting with the directors of the company twice a year. And the duration between two board meetings should be more than at least ninety days.

  • Perpetual succession: Another advantage of one-person company registration is perpetual succession. The life of the OPC does not end with the member’s death. The legal identity of the OPC remains intact even after the absence of the member. In the eyes of law, the work of the OPC will be shifted to the nominee and can be handled by him/her. So, even after the death of the member, the OPC will remain the same.
  • Flexibility in taxes and savings: The one-person company provides flexibility in taxes and savings. It can provide remuneration to the directors, lend money and give rent for their business. Thus, these deductions bring down the profit value of the property and reduce the tax liability. Less tax liability leads to more savings which will help the company to grow.
  • Easy to get loans from banks: Most banks do not give loans to proprietors’ firms. This is the most common issue for entrepreneurs. But an OPC gives the advantage of lending loans from banks and financial institutions. Since the criteria to obtain loans is becoming a registered corporate entity. 
  • An organized sector for proprietorship firms: The OPC facility has opened a window for small and medium scaled enterprises. There is a plethora of enterprises working in an unorganized way. The one-person company brings them under an organized roof and converted them into a registered corporate entity. If you have a business and want to bring them into the corporate world, OPC registration will be beneficial.
  • Eliminates unwanted middlemen: The middlemen demand a big part of profits for their service which affects your business profit. With registration in OPC, you can eliminate unwanted middlemen and save your profits. You are directly connected with the market and can avail of facilities without being forced and influenced. Thus, you can run your company in a better way and gain profits without sharing with anyone.


As you have come to this part of the article, we can expect you have understood the advantages of OPC registration. If you are the only owner of a business and wish to form a legal entity to enter the corporate field, the one-person company is an ideal choice. Since it provides numerous advantages, can also help in the growth of your company. Sole entrepreneurship can give your business legal status without looking for a partner.

As the OPC lies with a single owner, the decisions will come from the same person quickly. Hence, there will be sole control in the business. Moreover, many enterprises with a single owner wish to legalize their business to ensure growth. Most of them transformed their business into a single person company india. To avail of the facilities of the legal market, you must legalize your business with the help of OPC registration.

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