One of the most common questions he receives from sole proprietorship entrepreneurs is whether he is eligible to register a limited liability company.
An individual who wants to start a business as a sole proprietorship can choose her One Individual Organization (OPC) as her business structure.
As a corporate structure he gives below 10 reasons why she should go for OPC registration.
A Body Corporate, introduced in 2013, is by definition a one-person limited liability company. A legal entity is a separate legal entity, so the company is responsible, not the case of an individual.
For example, Mr. A was injured while using your product, so he can sue your company. However, since you work for another legal entity, he cannot sue you personally.
The No Minimum Capital Law was repealed in 2014, but many people are still unaware of it. No minimum share capital is required to register a sole proprietorship (OPC). You can choose according to the capacity.
For example, you can start your business with Rs. 5000
This is one of the most widespread myths of him. “Compliance does not come at a high cost.” First of all, OPC companies offer maximum freedom.
Plus, get proper legal records to help you apply for loans, credit cards, credit limits, bids, and other financial services despite the fact that you can spend up to $10,000 a year for OPC compliance can do. Easy Financing Most people don’t realize that loan financing is determined by their Cibil score and that a low Cibil score can make financing difficult. However, if you start a business, your OPC-Cibil score will be assessed. So if your company cannot receive funds because of his Cibil Score, yours is irrelevant.
Ease of Hiring Research shows that the hardest thing about starting a startup is building a great team, so it’s easier to hire in a private company than in a sole proprietorship. .
Sole proprietorships have no legal existence as they are not a registered form of commerce. So start a business and form a team.
Easy transition to limited liability company A limited liability company can also be set up after the OPC is established.
OPC can easily become a partnership by submitting a single form. There should be at least a 2 year gap between the two events. Minimum Requirements for OPC Registration In India, OPP registration is a straightforward process. Here are the requirements:
Must have a founder and a nominee. When the sole owner of the company dies, the designee takes over.
PAN card, Aadhaar card and bank statement are required for owner and nominee.
A utility bill and proof of residency are required to recruit an organization.
At Hubco.in, OPC registration costs only Rs. 11,000 (all inclusive) and the company can be up and running in 5-8 days depending on how quickly they provide the required documents .
A privately held company (OPC) with a turnover of INR 200 crore or more and capital of INR 500 crore or more must be converted into a limited liability company by filing a single form.
Benefits of MSME Registration Anyone can register as an MSME, but registering as a limited company will almost certainly give you immediate credit. What are the advantages of low interest MSME loans?
Banks lend money to specific priority areas at low interest rates. The Indian Savings Bank (RBI) fits these decisions. One of the priority sectors for credit is Micro, Small and Medium Enterprises (MSMEs).
Global Recognition Exporters recognize the difficulty of setting up an export business due to the distrust of foreigners.
OPC is therefore essentially a limited liability company and its inclusion in the government database facilitates international trust building.
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