There are many advantages of an OPC compared to other firms, some of which are enlisted below:
Benefits of OPC
Benefits of OPC:
- An OPC needs minimum paper work as compared with other firms, for instance, an OPC need not file a statement of audit with the MCA (Ministry of corporate Affairs)
- To begin a firm, only one member is required.
- OPC has perpetual existence i.e. the corporate will continue to exist even after the death of the member or the promoter. This can be as a result of the OPC can have an identity as separate from the promoter or the member.
- The biggest vital features of an OPC is the Limited Liability, the liability purely depends on the investment for the firm. It reduces the risk factor in the business as we compared with the sole proprietorship.
- The shareholder will be the only director as per the norms in the OPC.
- It needs minimum compliance compared with public or a private firm. There is no need of conducting annual general meeting, it is actually a biggest relaxation for the director and he can file and sign the financial statements by taking his own time, it possess very low risk for business.
- The OPC can get the loan quickly when it is under priority; it helps to enhance the business.
- Being a registered start up firm, it would be easy to get a fund from the financial institutions.
- An OPC additionally grants the chance to the promoter to convert in other kinds of firms as the OPC develops and grows.