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The answer is Yes! I have been doing registrations for online startups who are looking for (a) cost effective means of starting business (b) keeping the business less complicated with lesser legal requirements and (c) maintaining the control in the hands of a single owner. Whether online/ e-commerce based, product/ service based, OPC is no different for any activity.
Also, a One Person Company (OPC) is a combined package of a Sole Proprietorship business and a Company borrowing the best of both worlds.
Advantages:
1. To begin with, OPC company registration is much more smoother as there is lesser documentation in terms of no. of directors and lesser number of Forms (currently being the DIR-3, INC - 1, INC 2 and INC-3).
2. There is only one minimum director required and one nominee (like a successor) required. Hence, you don't need to find another director to start your company if you are looking for complete control in one hands.
3. Benefits that a Pvt limited Company enjoys can be enjoyed by the OPC as well. Eg: OPC has a separate legal recognition, funding/ loan opportunities are possible, legal contracts can be entered, income tax of the OPC are kept separate from the individual/ promoter, hence lesser complications on the individual's head.
4. Unlike private limited company, an OPC has to commit to lesser corporate formalities like conducting of frequent AGMs/ EGMs, maintaining quorum, minutes, ROC filing formalities etc.
5. Advantageous if you are looking at a small business initially to manage your costs. Later, based on the growth, you may convert to a private limited company with ease and include an additional director.
Hope the above was useful. Please feel free to get in touch in case of any further queries!
