Why OPC make more sense instead of Proprietorship?

One Person company or OPC offer a Corporate version of proprietorship with the benefit of Limited Liability Protection for your new business/startup. It given a professional impression and increases your brand value when presented to your costumers, Vendors or Employees. So OPC is corporate version of Proprietorship ,Which offers complete control on ownership, Limited Liability on Owner and better market perception.

Is OPC Suitable for Start-ups or Entrepreneurs?

Actually One Person Company is best suited for Startups with a single promoter, It is not only giving single promoter complete ownership but also helps to hire best talent due to its corporate status. It also shows seriousness as compared to a proprietorship, and give better professional impression in front of stakeholders.

Is OPC recognised as entity in other countries?

This is one of the most shought answers, OPC is proper legal entity duly recognized hence it is valid throughout the world. Although OPC is new concept and hence there may be lack of awareness & hence people can ask this kind of question but it will soon resolved as its number and awareness will increase.

What about inheritance of OPC in case main owner expires?

There is mandatory provision to assign a Nominee partner who will be owner in case current owner or sole member of that
one person company expires.

Is there any Limitation in OPC?

As per Ministry of Company Affairs, If an OPC crosses a turnover of 2 Cr for continues three years or have Paid capital of 50 Lakhs it mandatory to convert into private or Public Limited company.

What is Minimum capital required to start OPC?

Rs 1 lakh is minimum paid up capital with which OPC can be started.

What will be compliance cost for OPC?

Actually it depends on kind of business an OPC start. However mandatory compliances such as Income Tax return filing, ROC filing , GST and Other will cost at least 15K- 20K. In case there is no transaction or business still some mandatory compliances need to be done, however we charge just 12k-15k in such cases.

Is there any tax advantage in OPC?

OPC is also taxed on same rate as the company , LLP and Partnership i.e. 30% hence there is No upfront tax advantage in
OPC.

Is a Person can form more then one OPC?

Currently it is not allowed, hence one person can own only one OPC at a time.

What is process for OPC Registration?

It is almost same as a company formation process, So it starts from DIN number of director then Name approval and finally
Drafting and filing of MOA and AOA.

Can I convert OPC into Private limited or LLP when required?

Yes the OPC can be converted to private limited or LLP retaining the same name of company however as PAN number will
change you need to again apply for fresh GST number TAN number and other documents. So if you have a plan to change to LLP
or private limited in short term better to go for It directly rather then again going for conversion.