The companies ACT 2013, released a new segment in the company act which is known as one person company. This segment is run by the one member. There is no needed to have a co-founder for such corporation. The concept of the one person company provides new range of opportunities to the ones looking forwards to open their own business without taking help of team and directors. It is the great deal for the entrepreneurs who are willing to open business, but due to lack of team members, stakeholders and directors they unable to do it. To overcome from this problem, the Indian government launched one person company concept. Which not only support entrepreneurs but also increase the economy of the India.
It is a comparatively a new concept in India, while on the other hand, it has been proved successfully in other countries like UK, US, and China. The introduction of one person company in the companies act 2013 is a move that would encourage entrepreneurs to achieve their goals and contribute to economic growth.
The Classification which included OPC was;
i. On the basis of size
a. Small companies
b. Other Companies
ii. On the basis of number of members:
a. One person company
b. Private companies
c. Public companies One Person Company (OPC)
3 iii. On the basis of control
a. Holding companies
b. Subsidiary companies
c. Associate companies
iv. On the basis of liability:
I. by shares; and
II by guarantee (with or without share capital)
On the basis of manner of access to capital:
a. Listed companies
b. Un-listed companies
Features of the one person company:
The concept of the one person company is mentioned in the various provisions of the act, and an analysis of these provisions, salient features of the one person company.
Privilege available to the OPC members:
Some of the privilege and benefits associated with the OPC are listed below;
Incorporation of OPC:
Conversion of OPC in to Public and private company:
Impact of OPC in Indian Entrepreneurship:
The concept of the OPC is still in its nascent stages in India and would require some more time to mature and to be fully accepted by the business world. With passage of time, the OPC mode of business organization is all set to become the most preferred from of business organization specially for small entrepreneurs. The benefits emanating from this concept are many, to name few-
There is no doubt, in the upcoming years one person company concept will be fully accepted by the Indian corporation and fruitful for the small traders, and entrepreneurs.
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