What are the drawbacks of one person company?
There are few demerits/disadvantages associated with One Person Company (OPC) registration.
Few drawbacks of One Person Company (OPC) registration are as follows:
- A One Person Company (OPC) cannot raise funding by selling its shares and hence not preferred for startups.
- It increases the compliance cost yearly because audit and other compliance are mandatory irrespective of turnover.
- It cannot be converted into private company voluntary before two years from the date of incorporation.
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