Till recently, if you wanted to set up a private company, you needed at least one other person because the law mandated a minimum of two shareholders. So, for the person wanting to venture alone, the only option was proprietorship, an onerous task since it is not legally recognised as a separate entity. Now, after the recent passing of the much-hyped Companies Act 2013, there is an entity available for the budding entrepreneur. The Act brought in sweeping changes in the corporate world, has also opened the doors for the entrepreneur looking to set up a company all by himself. This has been made possible by bringing in the concept of One Person Company (OPC). Only a natural person who is an Indian citizen and resident in India would be eligible to set up OPCs. OPC could facilitate easier access to funding sources for entrepreneurs. Besides, having such entities, especially in SME (small and medium enterprises) sector would help the government to capture quality data about the sector and form policies accordingly. Though this concept of OPC is new in India, it has been very popular abroad, including in Singapore, USA, even Europe. Professionals feels that A one person company is a paradigm shift in the Indian corporate regime, bringing it at par with global standards. The report also states that it will provide a significant fillip to micro and small-scale businesses.
Posted on: Tue, 30 Sep 2014 20:58:33 +0000