What are the advantages and disadvantages of One Person Company(OPC)?

Starting One Person Company (OPC) is a very easy task in today’s world, and it being managed by a single person has many advantages and disadvantages to it, namely:

ADVANTAGES:

  • Tax flexibility and savings;
  • It has perpetual succession;
  • Elimination of a middleman;
  • Easy availability of loans from banks;
  • Easy management of Company;

DISADVANTAGES:

  • There exist many restrictions on the membership of OPC;
  • Heavy tax liability as they are put in the same tax slab as the private companies;
  • Suitable only for small businesses;
  • Higher incorporation and compliance costs;
  • One person cannot be a member or nominee in more than one OPC.

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