People like me who love to work alone with not being dependent to anyone, waiting for other to finish his/her part(or other way around), etc. Some works are better done solo.
Benefits of Sole proprietorship have always attracted entrepreneurs with tax benefit, solo ownership control, etc. No matter how beneficial Sole Proprietorship looks from outside, it can never beat company in terms of Goodwill that it enjoys in Corporate world. People end up paying millions for Goodwill of companies. I doubt that anyone would shell out so much for Sole Proprietorship. However, one major problem that many people face with company incorporation is that, you require at least 2 people to incorporate it.
Well, not anymore. No need to search for friends, relatives, etc for incorporation of your dream company. Say hello to OPC-One Person Company.
With assent to Company Bill, 2013, concept of OPC has been finally introduced. In simple words, I can form my own company, all by myself. It's like having the power of Sole Proprietorship with the legal entity of private companies by being the only Sole Shareholder. OPC is a great opportunity especially for solo entrepreneurs.
Though, just like any other law, OPC has it's own baggage of Good & Bad.
Major restrictions:-
a) Appointment of a nominee is compulsory.
b) OPCs could only be formed by Natural persons and not by artificial persons.
c) Inheriting currently prevailing company's tax bracket of 30% & provisions relating to MAT.
d) The name of the company must include the word 'OPC' within bracket below the name of the company.
Major benefits:-
a) Separate legal entity.
b) No restriction of further appointment of Director.
c) If only one director, there is no compulsion to conduct Board Meeting.
OPC is not a newly founded out concept. It has been into existence for quite some time in countries such as China, USA, etc. OPCs will be welcomed by many sole proprietorship firms who have grown tooooo big. It will also redefine how small businesses could be managed with more professionalism & effectively. With OPCs, people would need to comply more, just like private & public limited companies.
Also, bringing in greater transparency in the business dealings. It is hoped that there will be positive change in the business spectrum all over.
Benefits of Sole proprietorship have always attracted entrepreneurs with tax benefit, solo ownership control, etc. No matter how beneficial Sole Proprietorship looks from outside, it can never beat company in terms of Goodwill that it enjoys in Corporate world. People end up paying millions for Goodwill of companies. I doubt that anyone would shell out so much for Sole Proprietorship. However, one major problem that many people face with company incorporation is that, you require at least 2 people to incorporate it.
Well, not anymore. No need to search for friends, relatives, etc for incorporation of your dream company. Say hello to OPC-One Person Company.
With assent to Company Bill, 2013, concept of OPC has been finally introduced. In simple words, I can form my own company, all by myself. It's like having the power of Sole Proprietorship with the legal entity of private companies by being the only Sole Shareholder. OPC is a great opportunity especially for solo entrepreneurs.
Though, just like any other law, OPC has it's own baggage of Good & Bad.
Major restrictions:-
a) Appointment of a nominee is compulsory.
b) OPCs could only be formed by Natural persons and not by artificial persons.
c) Inheriting currently prevailing company's tax bracket of 30% & provisions relating to MAT.
d) The name of the company must include the word 'OPC' within bracket below the name of the company.
Major benefits:-
a) Separate legal entity.
b) No restriction of further appointment of Director.
c) If only one director, there is no compulsion to conduct Board Meeting.
OPC is not a newly founded out concept. It has been into existence for quite some time in countries such as China, USA, etc. OPCs will be welcomed by many sole proprietorship firms who have grown tooooo big. It will also redefine how small businesses could be managed with more professionalism & effectively. With OPCs, people would need to comply more, just like private & public limited companies.
Also, bringing in greater transparency in the business dealings. It is hoped that there will be positive change in the business spectrum all over.
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