New business owners often struggle with choosing the right business structure. Despite their obvious similarities, OPCs and sole proprietorships differ in many ways. The information you enter can be used to create your business structure. Read on. This article will help you register one person company.
You can set up an OPC (sole proprietorship) or sole proprietorship to fully manage your business. Without even a slight difference between them, it is impossible to compare them.Both have advantages and disadvantages. Small businesses are best registered as sole proprietorships and medium-sized businesses are best registered as sole proprietorships. You can compare the two and decide which one is best for your business.
Sole proprietorships cannot be protected due to their unlimited liability. Creditors can sell their personal assets if the company is unable to pay its debts. This can occur because sole proprietorships do not have their own legal entity. However, in such situations, the private enterprise (OPC) is fully protected. With legal independence, the assets of the Managing Director are always safe. If your business does not require a lot of money, you should choose a sole proprietorship or her OPC. start-up costs
Sole proprietorships do not need to be registered, so costs are usually lower. An individual is eligible to qualify as a sole proprietorship after obtaining GST registration and a business and operating license. Usually you need Rs. to sign up for such services. There is no cost to register. 5,000 yen per person will be charged. A series of registrations and procedures must be completed before OPC can start operating. A total of 15,000 rupees is required.
It doesn’t matter that none of them benefit from taxes. Profits (according to turnover) are taxed at a flat rate of 25% for a one person company. Both Minimum Alternative Tax (MAT) and Dividend Distribution Tax (DDT) are charged. Sole proprietors can declare profits at a flat rate of 8% if their turnover does not exceed Rs. One hundred million.
Sole proprietorships only need to file an ITR and update their books of accounts annually. A company run by only one person is also required to undergo an audit, file an annual report and notify her RoC of any structural changes. OPC will invest at least his $10,000 fee for compliance.
You don’t have to choose between the two. What you should do depends on the nature of your business. For sole proprietorships, a sole proprietorship is a viable alternative. If you don’t already have one, you need OPC.