Is it necessary to create a OPC(one person company) to launch a simple product in india?
I am from India. I have a simple product. Is it necessary that I start a OPC to launch the product or should I just launch it as a sole proprietor what are the risks in doing so?
I ask this question as the cost of forming a OPC is at least 100,000 rupees.
That's a lot of investment upfront that is not even for the product.
U can Sell it as a freelancer product...
Plenty of people I know are running small businesses off their own PAN as sole proprietors. Think of all the shops you see in every major city - many would go under if they had to set up a company before raising their shutters.
Risk = I'm told there's a 2,000,000 limit before you HAVE TO apply for a GST number.
Make sure you have a good CA when it comes to filing taxes and get receipts for all your business expenses.
1 lakh sounds way too expensive, even a pvt ltd should not cost that much. First time I am hearing about something called OPC. You sure it is not a private limited company you are talking about?
You can start off with a proprietorship/partnership company and that is more for tax purposes than anything else so that you can write off expenses and then you can change as you grow.
This comment was deleted 7 days ago.