Skip to main content

What is the difference between an OPC company and Proprietorship Company?


What is the difference between an OPC company and Proprietorship Company?

"Call Our Business Plan Experts at +91-72999-72500"

A One Person Company or OPC is a fusion of Sole-Proprietorship and a private limited company. It is the most popular form of business for entrepreneurs because of its easy funding, perpetual succession and distinct identity in society. It also offers protection of personal assets from the financial liabilities of the firm. Moreover, it is easily scalable to large size and enjoys corporate status in the eyes of banks and other financial institutions making it easier for them to get loans.

OPCs also enjoy certain benefits which are not available to sole proprietorship firms, like tax benefits. For example, income from the business is taxed at corporate rates and can avail of various deductions and exemptions which would otherwise not be available to a sole proprietorship firm. In addition, OPCs are required to comply with the same laws and regulations as apply to all companies, such as filing of annual returns, payment of taxes, etc.

Lastly, OPCs provide the option of limited liability to its owner which makes it investment-ready in the eyes of investors. In case of any legal disputes or financial obligations, the owner's personal assets are safeguarded since the company is considered a separate entity and their liability is restricted to the capital invested in the company. It is a good option for SMEs to register their businesses because it has all the advantages of a private limited company without the need to have a minimum number of directors and shareholders.

 

Tel:+917299972500

info@filingpoint.com

Comments

Post a Comment

Popular posts from this blog

How to Incorporate a New Limited Liability Partnership Registration India

How to Incorporate a New Limited Liability Partnership Registration India Incorporating a new Limited Liability Partnership (LLP) is a popular business structure in India. An LLP offers several benefits such as tax efficiency and limited liability of the partners. It is relatively easy to set up compared to setting up a Private Limited Company and the registration process can be completed online from the comfort of one's home or office. The key steps involved in the process are reserving the name, filing Form 2, and paying the requisite fee and stamp duty.  The first step involved in registering a Limited Liability Partnership is obtaining the Digital Signature Certificate of the designated partners. This is because all the documents filed for LLP online require DSC to be authenticated. A DSC can be obtained from government recognized certifying agencies. The cost of acquiring a DSC varies depending on the certifying agency. Once the DSC is obtained, a self-attested c...
Post a Comment
Read more

Startup India Registration in Nungambakkam - Filingpoint

Welcome to Filingpoint Top most consultant for Startup India Registration Expert +91 72999 72500 DPIIT (Department for Promotion of Industry and Internal Trade) introduced the Startup India scheme to encourage innovation within businesses. The scheme allows startups to avail of several advantages including exemption from income tax, money earns exception and eased norms with regard to public procurements. To be recognized as a Startup, the firm/entity must be working towards development or improvement of products/services and have a scalable business model with high potential for wealth creation and employment generation. Startup recognition is granted to entities that are incorporated as private limited company or as a registered partnership firm or a limited liability partnership. They must not be more than 10 years old and should not have been formed by splitting up or reconstruction of existing commerce. They should also have a turnover of less than Rs 100 cr...
Post a Comment
Read more

How to Register Software Company in Arcot, Vellore

Call Our Consultants Experts for Software Company Registration in Arcot, Vellore at +91 72999 72500 Introduction: Registering a software company in Arcot, Vellore is a streamlined process with Filingpoint, a trusted firm with over 13 years of experience in company registration. For just Rs 999/- , Filingpoint offers comprehensive company registration services, along with free consultation to guide you through every step.   How to Register Software Company in Arcot, Vellore To start, you'll need to decide on the type of company you wish to register, such as a Private Limited Company (Pvt Ltd), Limited Liability Partnership (LLP), or a One Person Company (OPC). Each type has distinct advantages, so choosing the right structure is crucial.   Next, you'll need to gather the necessary documents. Typically, this includes identity proofs and address proofs of the directors, passport-sized photographs, a PAN card, and proof of the company's registered address. Ensu...
Post a Comment
Read more