5 reasons to go for one person company
Whenever the individuals are interested to enjoy a good amount of control element over their business, they prefer the concept of formation of one person company is a great idea for the individuals so that they can become the perfect owner of the trade. One person company is very much suitable for the individuals who are interested to become the sole traders and are very much interested to enjoy the retaining control as well as power with themselves only.
Following are some of the major advantages of depending upon the formation of one person company:
- Safety net: According to the companies act the liability of the single shareholder in the one-person company will be very much limited to the unpaid subscription money in his or her name. So, the personal property will be completely safe and secure in the whole process from the creditors which will be helpful in terms of providing people with multiple benefits in the long run.
- Element of succession: The companies act over here will be very much helpful in terms of providing people with the perfect opportunity of nominating the stakeholders very well so that there is no chance of any kind of issue and everything will be sorted out from day one without any kind of problem in the whole process. Ultimately everyone will be able to enjoy a continuous life in the whole system so that the founding director will be easily made available in the whole process and decision-making becomes easy.
- Good market value: As soon as the one-person company will be registered under the company’s act, it will be enjoyed multiple privileges of a company without any kind of issue. Ultimately this particular company will be perfectly listed as a private limited company and ultimately will be having a good amount of market value in the industry as well without any kind of problem.
- Easy credit facilities: The legality of any kind of business in this particular case will be helpful in terms of providing people with multiple benefits along with the perpetual succession clause. So, this particular concept is very much helpful in terms of providing people with a very high level of popularity among the banks and financial institutions. In this particular manner, they will be no chance of any kind of issue in the whole process and everything will be carried out with a very high level of proficiency.
- Easy filing of the returns: Whenever the one-person company will be registered in the industry then also, they will be able to undertake the auditing and annual return filing very easily which will be further helpful in terms of providing them with multiple benefits in the whole process. Ultimately everything will be carried out with the signature of the director and the best part is that signature of the company secretary will not be mandatory in this particular case.
Hence, the decision to go for a foreign subsidiary or a one-person company is equally good in this industry so that everyone will be able to enjoy multiple benefits of the limited liability and good credibility in the whole process.