A One-Person Company gives you all the freedom you need. From exploration of your management skills to feeding your greed, this business entity is suitable for solo entrepreneurs. However, there is only so much you can grow alone. And when your expansion reaches epic proportions, it becomes mandatory to evolve your business entity by conversion to a Private Limited Company.
But is the promise of expansion the only reason behind converting OPC To PVT Ltd Company? Of Course not. There are many factors that dictate such a revolutionary move, and we are here to discuss all of them.
Reasons behind OPC to Private Limited Company Conversion
Here are the reasons behind this change:
- Expansion: We might as well address the biggest elephant in the room as we have already touched upon it in the start of this article – expansion. Even if you are a solo entrepreneur, expansion is something that you will always seek. And once your annual turnover crosses a certain threshold, you will need to go through that change – not because you want to. The Ministry of Corporate Affairs has mandated that all those OPCs who have crossed a certain amount of annual turnover must transform into a Private Limited Company.
- Better business management: The bigger your business grows, the more difficult it will get for you to manage it. Having partners is helpful at that time. With multiple perspectives behind your business, you have a better chance of evolving your enterprise.
- Better Profits: If you want to earn more, you need to look for ways to leverage your business. As a solo entrepreneur, there is only so much you can do. To evolve, you need to get others involved. And transforming into a private limited company would do just that for you. It will help you generate more ideas than before, making your profits soar.
- Better marketing: There are only so many venues you can explore as a Solo Entrepreneur. Yes, you can start a website and yes, you can leverage social media. What then? Granted that having both of these tools in your arsenal will gain you popularity among your audience. However, to really push your worth in front of the people, you need more minds to work alongside you. That time of out of the box thinking only arrives if you have a private limited company.
Related Service: Private Limited To OPC
Are these four reasons enough to make the change?
Looking at the number of these factors, many would say that it is not enough. But upon diving deeply you will realize that it is the weight of these factors that matter.
- Expansion does not happen in a day
- And it requires business management
- While enhancing your profits
- Backed by multiple ways of marketing
So, it is not the question of “should you”, but “when”. Because when you start your business, expansion is inevitable. And to invite that inevitable, you need to prepared. To be prepared, you need to have a structure – and there is no structure better than a private limited company.
So, when you are planning to grow up.
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