{"id":16277,"date":"2020-09-12T15:00:15","date_gmt":"2020-09-12T09:30:15","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=16277"},"modified":"2025-01-23T16:36:22","modified_gmt":"2025-01-23T11:06:22","slug":"benefits-of-opc-online","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/benefits-of-opc-online\/","title":{"rendered":"Benefits of OPC (One Person Company)"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The most important benefit of establishing One Person Company is that the owner is solely responsible for all the affairs. The matters of the company have less liability and enjoy benefits similar to that of&nbsp;<strong>Private Limited Company<\/strong>. The owner is exclusively the most powerful authority for one Person Company.  In this Blog we are going to cover all the Benefits of OPC. <\/p>\n\n\n\n<p>According to Section 2(62) of the&nbsp;<strong><em>Companies Act, 2013<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\"><strong><em>[1]<\/em><\/strong><\/a><\/sup>, OPC means a company consisting of only one person as an exclusive member. In general, it is a <a href=\"https:\/\/corpbiz.io\/company-registration\" title=\"Company Registration\"><strong>company registered<\/strong><\/a> and maintained by a single person. Entrepreneurs prefer this type of company over&nbsp;Sole proprietorship&nbsp;so that they can copy their company to overcome the complexity faced in the <a href=\"https:\/\/corpbiz.io\/sole-proprietorship-registration\" title=\"Sole Proprietorship Registration\"><strong>sole proprietorship firm registration<\/strong><\/a>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/benefits-of-opc-online\/#What_is_the_Nature_of_a_One_Person_Company\" >What is the Nature of a One\nPerson Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/benefits-of-opc-online\/#Advantages_of_One_Person_Company\" >Advantages of One Person Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/benefits-of-opc-online\/#Minimum_Requirements\" >Minimum Requirements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/benefits-of-opc-online\/#What_are_the_Annual_Compliances_regarding_the_One_Person_Company\" >What are the Annual Compliances regarding the One Person Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/benefits-of-opc-online\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Nature_of_a_One_Person_Company\"><\/span>What is the Nature of a One\nPerson Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An OPC can be registered as a Private Limited Company. The provisions that apply to a private company will exist on any OPC unless it is expressly excluded in the concerned Act or rules. <\/p>\n\n\n\n<p>A One Person Company can easily be changed into a Private Limited Company or a <strong><a href=\"https:\/\/corpbiz.io\/public-limited-company-registration\" title=\"Public Limited Company Registration\">Public Company<\/a><\/strong>. It is important to know that \u201cOne Person Company\u201d must necessarily be mentioned at the end of the company\u2019s name. <a href=\"https:\/\/corpbiz.io\/one-person-company\" title=\"One Person Company Registration\"><strong>OPC Registration<\/strong><\/a> offers a great number of advantages over other company types. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_One_Person_Company\"><\/span>Advantages of One Person Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The benefits of OPC are as follows-<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Benefits of being Small Scale Industries <\/h3>\n\n\n\n<p>OPC can experience various benefits provided to\nSmall Scale Industries (SSI) like easy funding from bank and any safety to a specific\nlimit, a lower interest rate on loans, and OPC can also have various benefits\nunder Foreign Trade policy and other related policies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Single Owner<\/h3>\n\n\n\n<p>Single owner is helpful as compared in having more than one owner. It is highly favorable in making a quick decision, managing business without any interference, or any suggestions from other person. The sense of belonging motivates to grow the business.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/step-by-step-process-of-one-person-company-registration-india\/\">Step By Step Process of One Person Company Registration<\/a><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Credit Rating<\/h3>\n\n\n\n<p>OPC with a bad credit score can still apply for the\nloan. The credit score of One Person Company is not material if the score of\nOPC is according to the norms.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Benefits under Income Tax Law<\/h3>\n\n\n\n<p><strong><em>The One Person Companies are eligible for deductions under the Income Tax Law. They are as follows-<\/em><\/strong><\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong><em>Title<\/em><\/strong>\n  <\/td><td>\n  <strong><em>OPC<\/em><\/strong>\n  <\/td><\/tr><tr><td><strong><em>Income Tax Rate<\/em><\/strong>   <\/td><td>\n  30%\n  <\/td><\/tr><tr><td>  <strong><em>Surcharge<\/em><\/strong>   <\/td><td>   7% &#8211; total income exceeds INR 1 crore but less than INR 10 crore.   12% &#8211; total income increases INR 10 crores.<br>   <br>      <\/td><\/tr><tr><td>\n  <strong><em>Taxed as<\/em><\/strong>\n  <\/td><td>\n  Domestic Company\n  <\/td><\/tr><tr><td>\n  <strong><em>Salary<\/em><\/strong>\n  <\/td><td>   Director\u2019s salary is allowed as expenses   <\/td><\/tr><tr><td><strong><em>Interest &amp;   <\/em><\/strong><br><strong><em>Remuneration<\/em><\/strong>   <\/td><td>   Considered as taxable income   <\/td><\/tr><tr><td><strong><em>Tax Burden<\/em><\/strong>   <\/td><td>\n  Moderate\n  <\/td><\/tr><tr><td>\n  <strong><em>Loans<\/em><\/strong>\n  <\/td><td>   When repaid, loans to directors are taxable   <\/td><\/tr><tr><td><strong><em>Distribution <\/em><\/strong><br><strong><em>Dividend <\/em><\/strong><br><strong><em>Tax<\/em><\/strong>   <\/td><td>\n  Applies\n  <\/td><\/tr><tr><td><strong><em>MAT<\/em><\/strong><br><strong><em>(Minimum Alternative   <\/em><\/strong><br><strong><em>Tax)<\/em><\/strong>   <\/td><td>\n  Applies\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h3 class=\"wp-block-heading\">Received Interest rate on any Late Payment<\/h3>\n\n\n\n<p>OPC can enjoy all the benefits under <strong><em>Enterprises\nDevelopment Act, 2006 as <\/em><\/strong>the newly incorporated OPC is Micro, Small, or\nMedium which are covered under the above mentioned act. According to this, if\nthe buyer or sellers receives any late payment then they are entitled to\nreceive interest rate which is three times the rate of bank.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Increase in Trust and status<\/h3>\n\n\n\n<p>Any business which runs in the form of the company\nalways enjoys an increased trust and status.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Easy Funding<\/h3>\n\n\n\n<p>If a company is a private limited company; One Person Company can\nraise funds using venture capital, angel investors, financial institutions etc.\nAny OPC can raise funds thus graduating itself to a private company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Limited Liability<\/h3>\n\n\n\n<p>One of the benefits of OPC is that it has more chances, has\nlimited liability since the liability of the One Person Company is limited to\nthe extent of the value of the share, and the individual can take more risk in\nbusiness without distressing or suffering the loss of any personal assets. It\nis a type of encouragement to new, young and innovative business start-ups.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Minimum_Requirements\"><\/span>Minimum Requirements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>Same director and shareholder;<\/li>\n\n\n\n<li>Minimum&nbsp;<strong>1 Shareholder;<\/strong><\/li>\n\n\n\n<li>Minimum&nbsp;<strong>1 Nominee;<\/strong><\/li>\n\n\n\n<li>Minimum&nbsp;<strong>1 Director;<\/strong><\/li>\n\n\n\n<li>Letters &#8216;OPC&#8217; has to be suffixed with the name of OPCs to differentiate it from other companies.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Annual_Compliances_regarding_the_One_Person_Company\"><\/span>What are the Annual Compliances regarding the One Person Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol>\n<li>Statutory Audit should be done by any Practicing Chartered Accountant;<\/li>\n\n\n\n<li>Minimum two&nbsp;<a href=\"https:\/\/corpbiz.io\/learning\/board-meeting-quorum-notice-and-requirements\/\"><strong>Board Meetings<\/strong><\/a>&nbsp;is required to be held;<\/li>\n\n\n\n<li>Maintenance of the Statutory Registers and Minutes;<\/li>\n\n\n\n<li>Filing of <em><strong>Form MGT-7<\/strong><\/em> for the annual return;<\/li>\n\n\n\n<li>Filing of &nbsp;<em><strong>Form- AOC-4<\/strong><\/em> for the financial statement;<\/li>\n\n\n\n<li><a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\" title=\"Income Tax Return Filing\"><strong>Filling of an ITR<\/strong><\/a>;<\/li>\n\n\n\n<li>Appointment of an Auditor;<\/li>\n\n\n\n<li>Annual Filing to the Registrar of Companies.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The owner is exclusively the most important authority of OPC. Registering this type of company offers a great number of benefits of OPC. An OPC can only be registered as a Private Limited Company. All the provisions that applies to a private company will exist on OPC unless it is excluded in the concerned Act or rules. <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a> shall be at your disposal if you want to establish\/incorporate any company. Kindly let us know if you have any query regarding the same.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/documents-required-for-one-person-company-registration-online\/\">Know all the Documents Required for OPC Registration<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The most important benefit of establishing One Person Company is that the owner is solely responsible for all the affairs. The matters of the company have less liability and enjoy benefits similar to that of&nbsp;Private Limited Company. The owner is exclusively the most powerful authority for one Person Company. In this Blog we are going [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":16290,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[157],"tags":[994],"acf":{"service_id":"4"},"authorName":"Sakshi Srivastava","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/IMG-20180130-WA0007.jpg","authorDescription":"Sakshi has pursued B.B.A.LL.B.(IPR Hons.). She is an avid reader and is keen to gather and share her knowledge on the subjects relating to IPR, Company Law and GST. Priorly she has worked as a legal researcher and vide her articles she aims at improving the core knowledge of the subjects to the masses.","postViews":23331,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/16277"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=16277"}],"version-history":[{"count":14,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/16277\/revisions"}],"predecessor-version":[{"id":68518,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/16277\/revisions\/68518"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/16290"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=16277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=16277"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=16277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}