The Benefits of One Person Company in India
One Person Company is a new concept. Earlier if you wanted to set up a private company, you needed at least two persons because the law mandated a minimum of two shareholders. So, for the person wanting to venture alone, the only option was proprietorship, which is not legally recognized as a separate entity. While doing business as a proprietorship firm, the personal assets of the proprietor can be at risk in the event of failure, but this is not the case for a One Person Company, as the shareholder liability is limited to his shareholding. Following are the key advantages:
- Lesser Compliance Burden
- Liability Limited to the value of shareholding
- Distinct identity from its owner
- Personal assets of Owner not affected
- Easy decision making
- No Statutory Requirement of Holding AGM
- Compulsory Nomination
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