Are you a freelancer providing certain services to your clients?
If you’re, then you will understand that being a freelancer is quite challenging & the hassle while providing freelancing services; whether it be the client trust issues in terms of payment or outsourcing services, the risk of not getting paid, and so forth. As a Freelancer, it adds more credibility, trust when you register an OPC – One Person Company. Clients and Investors Will Trust you more as you will have documents to prove that you have a registered company.
Also, if you had been a freelancer for a while, you could have experienced how difficult it is actually to generate new leads because a potential client always does look out for a reliable agency to outsource their services. Unless and until you do not have a good reputation and experienced network in the market, it is quite difficult to be trusted by major organization outsourcing their services. Besides, it is quite a fact that a freelancer will always be paid less than of what a company is getting to provide and deliver same quality services.
While if you were a company, you could have leveraged several of benefits like limited liability, funding, more opportunities, client trust, receiving interest on any late payment, increased prestige and much more.
It’s a good idea to register yourself as an OPC-one person company. Agreed you will have to do some more paper work but it’s worth it as it will make you appear more professional, credible and you will have the opportunity to establish yourself as a brand. If you are thinking from long term perspective it is always better to give your work some credibility & identity. I suggest you go for OPC.
So as to have a better grasp of why should a freelancer register his/her one-person company in India, let’s look at few points of what you can leverage and achieve through being registered as OPC in India:
1. Distinct legal entity:
Being an entrepreneur or a freelancer, you can register for either a private limited or one Person Company in India, but the important perk of registering one person is the ‘separate legal entity’. According to which, the identity of the OPC will be distinct from you or you as a legal owner will not be sued, in case the company falls under any legal controversy.
And, also, even being a separate legal entity, you will have the authority to do everything of what an entrepreneur would do.
2. Probable chances of funding:
What if you want to expand your business and needs funding? No one, in any case, will lend the money to a freelancer, right?
Unlike of freelancing, in case of One Person Company, you will have probable chances of getting funding from Angel investors, venture capitals, or financials banks/institutions (but only if you do have some amazing B-plan which can convince the investors). Thus, once you do have investment, you can immediately upgrade yourself to a private limited company.
3. Limited Liability and hence more opportunities:
One another major advantage of One Person Company is Limited Liability, according to which you will have the accountability or legal responsibility only for the maximum value of what shares you do hold. Wondering how it is going to benefit you? In case of any legal controversy or case or debts over the company, it will be the company which will be sued, not its owners, and you will be held responsible only for a fixed sum or so-called limited liability.
Limited liability, hence, will be able to offer you more opportunities and you will have the liberty of taking more risk in business without affecting the worth of your personal assets.
4. Easy registration and the minimum requirement:
The registration can be a very easy process, but with a proper guide and support. There are very few requirement of registration a one-person company in India which incorporates of minimum 1 shareholder and 1 director (same person can be director as well as shareholder), 1 nominee (any person or company in whose name the registration of stock or bond will be done, apart from you as the owner), a DIR (director identification number) and a DSC (digital signature certificate) for the director.
5. Easy decision process and complete control of the company:
You also do have both the things in case of freelancing as well, right?
But getting an easy decision process and a complete control over the company along with a legal status and recognition can be made possible only in case of One Person Company. For example, in case of private limited or Proprietorship, you won’t have those benefits anymore.
But, again, once your One Person Company in India exceeds turn over or transaction of 2 Crores, you will have to upgrade your OPC to a private limited firm.
Besides, unlike of proprietorship, in the case of One Person Company, your personal assets do not have any chances of being on a stake in the mere case of company failure or debt. Besides, these were just a little grasp of what you can achieve and be benefitted with the registration of One Person Company in India. Apart from them, you will also have some certain benefits that may include:
- Tax saving
- Endless progression
- Adequate safeguards
- Credit rating
- Minimum director required is 1, but can have multiple directors up to 15
- No need to annual general meeting
- In case of any credit default to the company, personal assets of both the shareholders and owners are safeguarded (as we discussed above)
- Under the micro, small, and medium Enterprise development act, 2006, the receiver is entitled to receive interest (up to 3 times of the bank) in case of any late payment
- And, importantly, you will achieve more prestige and trust in the market and among your client.
Registration of One Person Company in India is a hassle-free process, but only with a proper and professional guide and support. That’s why we at HgCorporates.com, being a professional company registration service provider in Mumbai have come up with ‘OPC registration’ at a very reasonable price and most importantly we will make the OPC registration process easier and hassle-free for you with proper guidance and support, whenever required.
So, will you be ever able to get these numerous benefits being a freelancer? Not truly.
So what are you sitting tight for? Register One Person Company in India today and avail all of its benefits and increased chances of growth in your dream career.
In case of any query, you may write us at email@example.com, or you may directly reach our Expert for company registration process in India at 82608-82609