How to start ‘one person company’?

All businesses require a business entity such as partnership, private limited company and public limited company. Without the entity it is…

All businesses require a business entity such as partnership, private limited company and public limited company. Without the entity it is difficult to get into contracts, get current back accounts, and transact with the customers and other businesses.

One can register with the help of a chartered accountant. Or one can apply online through websites such as Legalwiz. For example registering the company as One Person Company is the fastest way to register. It is least complex as it does not require minimum number of directors. At the same time its benefits are that of a private limited company.

Legalwiz is an online service provider. It describes One Person Company as:

One Person Company feature is such that it has only one shareholder who owns 100% stake of the company. To maintain the character of perpetuity, the appointment of the nominee is compulsory, who will take place of the owner in case of death or his inability. One person company is a type of Private Limited Company.

There are four key benefits of registering the business as One Person Company. One, it has a separate legal existence from the owners. Two, liability of the owner is limited to the unpaid amount of the capital subscribed. Three, it requires lower compliance such as general meeting and board meeting. Four, owners can appoint professional managers, so as to separate the ownership and management.