| dc.description.abstract | The Companies Act of 2013 completely transformed Indian corporate law by adopting several new approaches that had never existed before. The adoption of the One Person Company concept was one such move. This resulted in the acknowledgment of a totally new way of setting up a business that provided the flexibility that a company form of entity can provide while also offering the limited liability protection that sole proprietorships lacked. Before the new Companies Act was enacted in 2013, several other countries had already acknowledged the ability of individuals to form a corporation. China, Singapore, the United Kingdom, Australia, and the United States were among them.
In India, the OPC was introduced in the Dr. J.J Irani Committee report of May 31, 2005, which promised an increase in the number of entrepreneurs in the market, allowing them to make a more widespread contribution to the economy. As a result, the acknowledgment of a single individual economic entity makes it easier for small merchants, craftsmen, and other service providers to start a company by increasing their opportunities and reducing their liability with minimum procedural/compliance requirements. If you wanted to start a private company under the old Companies Act, you required at least one other person because the law required a minimum of two directors and shareholders. So, if a person wanted to start a business on their own, the only choice was to become a sole proprietor. In the case of a one-person company, however, only one person is required, who can be both a shareholder and a director, allowing them to form a single-person economic entity unit.
An OPC is a composite system that incorporates the best features of both a sole proprietorship and a corporation. As a result, identifying the perfect kind of co-partner/s for starting a business as an authorized entity is no longer a burden. | en_US |
