A Company enjoys a separate legal status.It is a person within itself. It has it's own identity separate from its owners. First company is formulated and then registrations are obtained in the name of the company.

Most of all, an OPC is Incorporated as private limited and private limited company enjoys a privileged status in the market above all other business structures. It is considered to be most authentic to deal with by the foreign entities also.

One of the most important features of an OPC is the separation of the personal assets from those of the business. When someone opens a business, they want to make sure that if credit or debt issues arise in the business, that does not affect their personal assets.In sole proprietorship business debt has to be paid by owner and personal assets are to be involved in paying the debt of the business.Whereas in OPC, risk is limited only upto the amount of capital involved into the business of OPC.

Company has a formalised corporate identity with the AOA and the MOA It is required to maintain proper books of accounts and get them audited. it enables the business owners to formally structure the business, establish a framework for the business and maintain the proper documentation in the event of acquisition and third party investors. Establishing the proper corporate structure at the outset sets the business up for long term success.