One Person Company (OPC) allows founders to start their own venture by allowing them to create a one-man company. Since no interference is seen from any third party, it is more advantageous. Being a completely new concept in India, One Person Company is expected to have a huge impact on the economy and development of the country. Being more advantageous, it can be considered an improvement on sole proprietorship. OPC registration in Chennai offers immense potential to the lone entrepreneur. However, there is a limit to this, if the company’s turnover exceeds Rs 2 crore in Indian rupees, the company has to be converted into a private limited company as per government regulations.
Merits of OPC registration in Chennai
Entrepreneurs find that increasing the number of staff increases their company’s risk profile. The risk of bad rent is lower if you can get salaries from existing cash flows. If you take the money to include staff, the risk of bad hire is very high. And remember, even the best staff need time to achieve maximum productivity. But payments on borrowed funds begin immediately. You know when your electric bill will come in and (approximately) how much it will cost. This also applies to payroll and other expenses. The costs are almost 100% affordable. Unfortunately this is not even the case with earnings. Some earnings are strong or weak over time. Other earnings depend on the external market. And almost all revenues depend on what the economy is in a broad cycle. If you increase your payroll costs, some simple variations in revenue generation will not deter your expansion plans.
OPC registration in Chennai states that the primary task of an individual company is to create a healthy lifestyle for the company owner. But growing sales does not always mean that the owner is increasing the home payment. Entrepreneurs found that business is a balanced machine with interconnected processes. This means that you cannot grow a part of your business without affecting other areas. For example, an increase in marketing cost requires the hiring of a salesperson. The new salesperson may need HR support or payroll resources. They need a phone and a computer to work with for a sales call. Starting out as a small change for your company can have a serious impact on your costs.
One of the biggest costs for any company is rent. OPC registration in Chennai states that most entrepreneurs work from home. But if they only add one staff they will have to go to the office. The price of low-cost co-work space for you and your new employee will also bite into the bottom line. Being small is a huge competitive advantage. Consider companies with large costs. Their overheads can be prevented from adapting to emerging market conditions. Financial cycles and new technology can damage a business very quickly. Most overhead companies do not always realize change quickly or easily.
Limited liability in OPC registration
OPC registration in Chennai states that the first advantage of doing business through a company is the limited liability that the company gives to directors and shareholders. As a sole proprietorship or partnership business, the personal assets of the owner or partners may be at risk when the business fails, but this is not the case for the company. Unfortunate events such as business failures are not always under the control of the founder; it is therefore crucial to protect the personal assets of the entrepreneur when crises occur. Unlike ownership and partnership, if a company goes bankrupt and is injured, only the company’s assets are used to pay off its debts. The directors or shareholders of the company have no personal obligations and are not bankrupt and are free to continue the business.
Legal Entity Recognition
OPC registration in Chennai states that a private limited company is a legal entity, a person of the judiciary established under this Act. It has its presence apart from its directors and members. Private Limited Company status can take you more seriously than owner / partnership status. Working as a private limited company often instils confidence in the business for suppliers and customers. Especially large companies prefer to deal with private limited companies rather than ownership / partner companies. Attracting quality workforce and achieving strategic motivation of employees is easy through the use of flexible and wide range management status.
OPC registration in Chennai states that a company gets better ways to borrow funds. It can issue debentures, is safe and secure, accept deposits from the public, etc. Banking and financial institutions also prefer to provide large financial assistance to the company rather than partner companies or ownership concerns. The company gets better ways to borrow funds. It can issue debentures, is safe and secure, accept deposits from the public, etc. Banking and financial institutions also prefer to provide large financial assistance to a company rather than partner companies or ownership concerns.
OPC registration in Chennai states that small entrepreneurs can set up ‘one-person companies’ to directly access target markets rather than being forced to share their profits. It offers tremendous opportunities to millions of people, including those working in the handloom, handicrafts and pottery sectors. They work as artisans and weavers on their own, so they have no legal scope as an organization. But OPC helps them do business as a business and gives them the opportunity to start their own ventures with a formal business structure.
Relaxation available for the OPC registration in Chennai
Provisions for the annual general meeting, extra- ordinary general meeting are not applicable to the one person company. It should have compiled with the provisions of the Board meeting as well. There is no requirement of conducting board meeting as well. The director is said to be the sole member of the company. The one person company is also exempt from the provisions relating to the notices of the meeting, section 101, statement annexed to the notice section 102, Restriction on voting rights section 106, postal ballot section 110 and circulation of member’s resolution. Section 111.
Thus OPC registration in Chennai is the best consultant in providing the registration services.