Status of a separate legal entity: An OPC registration in India receives the status of a separate legal entity. Here the liability of the member is limited to his or her shares and he or she is not personally liable for the losses that are incurring.

Easy to obtain funds: As One Person Company is a separate legal entity it is easy to raise funds through venture capitals, angel investors, incubators, etc. One Person Companies get loans easily than a proprietorship firm. It is very easy to obtain funds.

Fewer Compliances: There are certain exemptions to the OPC when it comes to compliances under the Companies Act, 2013. There is no need for the Company Secretary to sign the books of accounts and annual returns and is to be signed only by the director.

Easy Incorporation: It is easy to incorporate an OPC as only one member and one Nominee are required for the incorporation. The member can be the Director too. For incorporating an OPC in India the minimum paid-up capital required is Rs.1 lakh. Thus, it is easy to incorporate a One Person Company as compared to other forms of the entity.

Easier to manage: The OPCs are easier to manage as they can be established as well as run by one single person. The decision-making is easy and quick. Thus managing a company is easy as there won’t be any conflict or delay within the company.

Perpetual succession: A person needs to be appointed as a Nominee. On the death of the member, the nominee will run the company in the member’s place.