Q. What are the major disadvantages (cons) for One Person Company (OPC) registration?

Paras Mehra February 9, 2017 1.06K Views

There are few demerits/disadvantages associated with One Person Company (OPC) registration. Few of the disadvantages 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.