Benefits of One Person Company in India

Benefits of One Person Company in India


In the Union Budget 2021-22, the Finance Minister has proposed to allow small entrepreneurs to set up one-person companies to directly connect with their target market and avail credit facilities. This will enable millions of artisans, weavers and pottery makers to become self-employed and do business as a corporation.

A one-person company allows a single individual to be incorporated and run a private limited company with minimal compliance. The entrepreneur can take advantage of the benefits of corporate structure like limited liability without having to deal with compliance requirements, like shareholder meetings.

Manageable Structure: A One-person Company has a managed structure with no annual general meetings and a minimum of one director. This will make it easy to manage the company and keep track of all financial records.

More Opportunities, Limited Liability: A one-person company is a separate legal entity and can take more risks than a sole proprietorship firm without having to worry about losing personal assets. The owner also enjoys tax relief by being a private limited company as he will not be liable to pay income tax on his profits.

Suitable for Small Businesses: A one-person company is ideal for small and start-up businesses as it can be registered with a minimum paid-up capital of Rupees Fifty Lakhs or turnover of Rs two crores. It can also be re-incorporated into another type of company at any point of time, as long as it meets the minimum thresholds prescribed in the Act.

Tel:+917299972500

info@filingpoint.com


Comments

Post a Comment

Popular posts from this blog

Company Registration in Nungambakkam - Filingpoint

Image
Call our Filingpoint Online Company Registration Expert +91 72999 72500 Filingpoint   Company Registration in Nungambakkam is a critical step for entrepreneurs who want to start a business in one of India's most thriving cities. However, it's crucial to have full knowledge of the benefits, types of companies, and registration process to ensure smooth and error-free execution. Benefits of Company Registration in Nungambakkam The most important reason for registering a business is to have a distinct legal entity which is separate from its promoters, shareholders or members. This protects the personal assets of the members in case of any financial liabilities. Another benefit of a registered company is the ability to raise funds through public offering and also provides tax advantages. Besides, a private limited company provides higher credibility for businesses and helps in attracting better manpower. Additionally, it is easy to expand the operation...
Read more

IE Code Registration in Kodambakkam - Filingpoint

Image
Welcome to Filingpoint Online IE Code Registration Expert +91 72999 72500 Filingpoint   IE Code is an inevitable 10-digit code for anyone involved in the import and export of goods or services in India. It is issued by DGFT and comes with a lifetime validity. Importers and exporters cannot continue business without this code and they can't avail benefits from DGFT or Customs for their import/export business. It is also required by the banks for money transfer abroad. The IE Code registration can be done online and the documents needed are: Getting an IE code opens up international markets and allows you to take your business to the next level. It also helps you in making your business more credible and trustworthy. You can register for an IE code as a sole proprietorship, partnership firm, limited liability company (LLC), trust, HUF, or society. The process is entirely online and the documents required are simple to submit. The advantage of an IE Code...
Read more

LLP Formation: Common Pitfalls to Avoid for First-Time Entrepreneurs

Image
Call our filingpoint experts at +91 72999 72500 or visit https://filingpoint.com Introduction: When venturing into the entrepreneurial realm, forming a Limited Liability Partnership (LLP) can be an appealing choice due to its flexibility and liability protection. However, for first-time entrepreneurs, the LLP formation process can be fraught with pitfalls. Filingpoint experts will provide consulting about LLP formation and startup. Let’s go to discuss about “LLP Formation: Common Pitfalls to Avoid for First-Time Entrepreneurs”.   Here are common missteps to avoid:   Incomplete Understanding of LLP Structure: §   Many first-timers dive into LLP formation without a comprehensive understanding of its structure and legal obligations. It's crucial to grasp the roles and responsibilities of partners, compliance requirements, and tax implications.   Choosing the Wrong Partners: §   Selecting the right partners is paramount. Rushing into partnership...
Read more