How OPC Registration Attracts Investors and Capitalists?
One of the key barriers to entry for many concepts especially for new entrepreneurs is getting funding. In India, the process of One Person Company Registration (OPC) is becoming more popular among startups and other one-member business individuals. Can OPC Registration really unlock the door to angel investors and venture capitalists (VCs)? The response is the features that make it possible for companies to build a sturdy framework and expand. This blog looks at how registering a company as an OPC can help it attract investors.
What is OPC Registration and Why is it Growing Popular?
OPC Company Registration provides an opportunity for a single person to start a company but with limited liability and corporate personality. Among the many legal structures in the country, an OPC operates under conclusive corporate laws, unlike the sole trader’s business.
Key Features of One Person Company Registration:
1. Limited Liability: Shields the owner’s other assets from being taken to pay on a debt or another obligation.
2. Separate Legal Entity: Signifies reliability and impartiality.
3. Easy Compliance: Less number of compliances than a Private Limited Company.
4. Scalability: Its growth usually requires OPCs to be converted to a private limited company.
They make the Registration of One Person Company popular amongst many start-ups who seek to register a company online in order to gain credibility.
Why Are Angel Investors and VCs Interested in OPCs?
Customers look for organisations they would want to invest in and watch grow in terms of operations. OPC Registration offers several benefits that attract their interest:
1. Transparency and Legality of Business Conducts: To entice investors, entrepreneurs have to put up structures that are in legal compliance. OPC Registration empowers entrepreneurs to thrive by involving the maintenance and auditing of financial records according to the provisions of the Companies Act, which helps investors accept your business.
2. Attractive Business Model: Due to limited liability, and structurally sound governance profiles, OPCs allow investors to gain an insight into the workings and health of the company. These make OPCs more attractive than sole trader businesses.
3. Conversion to a Private Limited Company: Investors, Angel Investors, and VCs always give preference to investing in Private Limited Companies. The fact that OPC can be easily converted into a Private Limited Company is an added advantage and seals off any future problems as far as funding is concerned.
Why OPC Registration is Great for Increasing Your Fundraising?
1. Step-by-Step Guide to Register a Company Online: Registering a company as an OPC is not a cumbersome affair compared to the choices determined by several compliance and formalities. Thereby OPC Registration is smart move for solopreneurs as it has made a way for founders to spend most of their time seeking investors instead of being stuck on paperwork.
2. Enhances Credibility: There is more credibility in an OPC structure than in a sole trader structure. If one is to seek an investor he or she should know that an investor will be willing to support a business that registers a company under the company’s act.
3. Favourable Tax Treatment of Investors: There are some tax incentives that implementation industries receive like those afforded to start-up industries for OPCs. This makes a business financially good and can attract angel investors who look at the long-term profitability of any business.
4. Protection Afforded to the Investors: Through OPC Company Registration, the listed company is expected to operate in transparent conduct, which affects investor risks negatively. Legal risks are in the form of MOA and AOA, which elaborately define business objectives and activities.
Conclusion
In case you are interested in setting up a business company to float it to angel investors and venture capitalists, OPC Registration is advisable. It has a fairly simple procedure for company registration online together with certain investor-friendly features. Make your dream of a Future Of One Person Company In India, a reality by taking the first step by registering for the OPC Company Registration now!
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