The Best Start for Solo Entrepreneurs
If you want to run a solo operation but keep the prestige and limited liability of a Private Limited Company, a One Person Company (OPC) is your ideal choice. Introduced in the Companies Act 2013, an OPC allows a single director to incorporate a legal entity.
Comparison: OPC vs Proprietorship
While a proprietorship is easier to start, an OPC offers limited liability. If your company faces a legal lawsuit or debt, your personal savings and property remain safe! This alone makes an OPC a much better long-term choice.
Structural Limits
Remember that once your OPC turnover crosses ₹2 Crores, you must convert it into a regular Private Limited Company. This ensures the structure is suitable for its scale.