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
About EbizFiling.com :
EbizFiling.com is a motivated and progressive concept conceived by like-minded people, which helps small, medium and large businesses to fulfill all compliance requirements of Indian Laws.
Get in touch for a free consultation on email@example.com or call 9643203209.