Once upon a time, the only avenue available to a single businessperson to register his or her company was to opt for a sole proprietorship. However, recently, a second option has been added. OPC can be registered when there is only one owner of the trade.
One-person company is corporatization of sole proprietorship, so it has all benefits a corporate enjoys aside to this it has some relaxations in provision of company law.
What are the Benefits of One-Person Company?
Following are some of benefits of One Person Company.
- It has separate legal entity.
- The liability of shareholder/ director is limited
- Legal status and social recognition for your business.
- It gives suppliers and customers a sense of confidence in business.
- The director and shareholder can be same person
- On the death/disability company can be succeed by nominee.
- Exemption available from various provisions under Company law.
- They do not have to hold annual general meetings.
- Their financial statements need not include cash flow statements.
- A company secretary is not required to sign annual returns; directors can also do so.
- Provisions relating to independent directors do not apply to them.
- Several provisions relating to meetings and quorum do not apply to them.
- They can pay more remuneration to directors than compared to other companies.
- It is unchallenging to manage a One-Person Company as it Provides complete control of the company to a person.
- This type of company is regarded as a corporate entity that draws in various venture capitalists and angel investors that support and help the company to raise more funds and to expand its business.
- When you register a company name, it is protected and cannot be used by any other limited company or LTD, nor can another company register a name that is similar to your own company name.
- Small businesses with an annual turnover of less than N25 million are exempted from paying Company Income Tax in Nigeria.
If you are still not sure which one to pick for your business, feel free to reach out to us and our experts will guide you in making the right decision.
SplashDict is equipped with accredited experts and the necessary resources to assist you to complete the One-Person Company Incorporation in Nigeria.
- Delivery of Certificate Of Company incorporation.
- Drafting and digital delivery of approved Memorandum of Association and Articles of Association (MEMART).
- Delivery of Status Report.
- Delivery of Certified True Copy of Application Form.
- FIRS’ Tax Identification Number Inclusive.
- 3 to 14 Business Days Delivery.