One Person Company has more advantages – Budget 2021-22
The current budget has allowed several new benefits to one person companies (OPC) which has made it quite attractive compared to the past.
Let us look at some of the benefits of OPC
- Ease of compliance requirements compared to a private limited company, and it is also more cost-effective for the small entrepreneur
- OPC can transition to a private limited company or public company more easily now
- Such companies can now grow without any restrictions on paid-up capital up to Rs 2 crores and turnover up to Rs 20 crore
- OPC offers protection to the sole proprietor from litigation and other potential issues. There is a distinct separate identity now for the small business owner. The personal assets of the business owner now stay protected
- More fundraising opportunities now for start-up and small business entrepreneurs. There are micro, small and medium business loans that are easily available.
- The residency limits for an Indian citizen to set up an OPC are reduced now from 180 to 120 days and non-residents are also allowed to set up OPC in India.