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The disadvantages of OPC are given below:
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An individual who is an Indian citizen and an Indian resident is eligible to apply or act as a One Person Company (OPC) member or nominee. In the above statement,...
A sole proprietorship is a simple business that is carried by a single individual. This is registered under an individual name, and the sole proprietorship is only responsible for all...
An S-Corp is a structure of business that allows small businesses to pass their deductions, incomes, and credits to the shareholders directly, avoiding any federal corporate tax with full liability...
Follow these steps to register for a one-person company. First, you need to get the Digital Signature Certificate (DSC), for which you need to gather some of the following documents:...
An LLC (limited Liability Company) is a business structure that provides legal protection to all of its owners. The number of the LLC members' liability is limited to their investments...
If an LLP fails to file the annual income tax return and the Ministry of Corporate Affairs, then they need to pay a penalty of INR 100 per day, which...
A C-corp is a company that provides stocks to the shareholders, and a C-corp is owned by the board of directors. A C-corp protects its shareholders from business-related liability, which...
Here are some of the differences between the LLC and LLP: An LLC is formed by the single or multiple owners, and an LLP is formed by multiple businesses. LLC...
According to section 44AE of the Income Tax Act, these businesses are eligible if they have engaged in hiring, leasing, or operating fewer than 10 goods and vehicles in a...
Yes, an LLP can give a loan to a company, which is subject to some rules and regulations: LLPs are known as legal entities, which gives them the authority for...
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An OPC (One Person Company) is a legal entity that combines a sole proprietorship company and a business. It provides an opportunity for small businesses and investors to stay in their own company. OPC provides credibility and protection, and it has only one director and one shareholder, which is a perfect choice for solo investors or small businesses to grow their business.
OPCs have limited fundraising opportunities as they are not allowed to raise funds from equity, which results in small businesses to give aa hard challenges to growing industries.
OPCs are only best for small businesses, and have a cap on annual and paid-up capital. However, if the business surpasses these limits, then they have to convert its OPC into a private limited company, which further leads to more complexities.
OPC has restrictions on incorporation as other companies' structures. OPC cannot be incorporated by an NRI. It limits the contribution of the individual residing outside the country, who brings capital or valuable experience.
One of the main disadvantages of the OPC is that it costs more as compared to a private limited company. Its tax filings, MCA filings, increase the cost, and if you hire a professional for managing legal compliance, auditing, and accounting, it can be a costly choice for small investors.