One Person Company (OPC)
After ‘The Companies Act’ in 2013, One Person Company concept was introduced thus revolutionizing the corporate laws in India. Being the sole owner of the company and its only shareholder is called the OPC. Because of these regulations, the demerits of Sole proprietorships were removed to a great extent.
The following are the benefits of OPC:
- Succession: The stakeholder of the company can provide a nominee for its succession over his death or if he steps down or can no longer run it.
- Simple to Get Loan from Banks: One Person Company gives access to easy credit facilities from banks and financial institutions.
- Annual return filing: It is not mandatory for the director of the company to hire a secretory for annual return filing making the process easy.
- No prerequisite to holding annual or Extra-Ordinary General Meetings.