Business Models Good for One Person Company

NOIDA, India - Feb. 5, 2018 - PRLog -- What is a 'Business Model'?

A business model is a theoretical aspect supporting the practicality of a business operation, including its purpose, its goals and its future plans for achieving them.  In short, Business Model specifies the purpose of the organization. Different plans and policies implemented by the company are part of its development and which contribute to achieving that objective. Business Model explains what products or services the business experts should plan to manufacture and market, and what steps should be taken to implement such plans including expenditure.

Breaking Down 'Business Model for One Person Company'

Business Model helps to take appropriate measures to make a profitable business in the particular region. Different plans and strategies are used as per the nature of the business. For instance, the business model for a hotel industry will be significantly different from the business model of the finance industry.

To put together a good business model, you need to know the value proposition for the business. A value proposition is a straightforward statement of what a company offers in the form of goods or services that is of value to potential customers or clients, ideally in a way that differentiates the company from its competitors.

Every Business model shall estimate the projected startup cost, source of capital or financing, the target customer, marketing strategy, competitor, and estimated profit and expenses. The most common mistake which leads to failure of a business is the projection of necessary expenses to fund the business.

Types of Business Models

There are many different types of business models for One Person Company. Every organization should appropriately select the business model as per their requirement. The need of business model and the effect of such model on the business should be considered by the strategist while drafting the scheme. Even if two businesses operate within the same domain, they are likely to have different competitive advantages and disadvantages.

One Person Company

The awareness of a One Person Company in India is under the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. Other entities like a Private Limited Company or a Limited Liability Partnership (LLP) (https://enterslice.com/limited-liability-partnership) needs at least two members to incorporate and keep the entity operative. While in One Person Company there can be only one member in it. Similarly, One Person Company has a separate legal status from its promoter. Which offers them limited liability protection to its shareholder.

In OPC, must nominate a nominee, which should be mentioned in Memorandum and Articles of the company. If in case the Director is disabled to perform his duties nominee can act on behalf. Moreover, there is a criterion for conversion of OPC to Private Limited Company if it crosses a turnover of Rs. 2 crore and paid up capital of 50 lakhs.  A person cannot be eligible to form more than one OPC or become the nominee in more than such companies. An only Natural person can form an OPC.

About Enterslice

Enterslice is an online service provider that can help you out proceedings and be getting NBFC Registration in India. Some of its popular services are One Person Company Registration (https://enterslice.com/one-person-company), FSSAI Registration, financial services, taxation, and risk and assurance.

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