What are the hidden advantages of One Person Company?

One person company is a new type of business entity that allows a single entrepreneur to operate a corporate entity with liability protection. To let you know more about the one person company, I am going to share the hidden advantages of One Person Company.

The concept of one Person Company in India was introduced through the companies act, 2013. The concept was launched to support entrepreneurs. It is a separate legal entity from its promoter, offering limited liability protection to its sole shareholder. Now, let’s review the hidden advantages of OPC.

Let’s elaborate the hidden advantages of One Person Company.

1.    Easy to manage

One person company is easy to manage, there is no requirement to hold annual or extraordinary general meetings. Only the resolution shall be communicated by the member of the company and entered in the minute book.

2.    Tax flexibility and savings

It is possible for a company to make a valid contract with its shareholder and directors. This  means as a director, you can receive remuneration, as a lessor you can receive rent, as a creditor you can lend cash to your personal business enterprise and earn interest. Directors’ remuneration, rent and interest are deductible fees which reduces the profitability of the enterprise and in the end brings down taxable earnings of your enterprise.

3.    Easy to get loans from banks

Banking and financial establishments opt to lend money to the company as opposed to proprietary companies. In maximum of the conditions Banks insist the marketers to transform their company right into a personal restrained enterprise earlier than sanctioning price range. So it's far better to register your startup as a One person non-public constrained in preference to proprietary company.

So, these are the hidden advantages of the one person company. If you also want to register with one person company, then you can approach Tax Home, is the market leader of company registration. You can choose One person Company registration in Delhi and MSME registration in Delhi with the help of Tax Home. Approach the professionals and get the best solution for the business related issues.