With the new Companies Act, 2013 coming into force, the ‘One Person Company (OPC)’ has been introduced for the first time in India, which would allow a firm to be registered with just one shareholder and limited regulatory costs and other requirements. An individual can register a maximum of five such entities for business purposes.
According to the new Companies Act, the words ‘One Person Company’ should be mentioned in brackets below the name of such company, wherever its name is printed, affixed or engraved.
This would provide tremendous opportunities for millions of people, including those working in areas like handloom, handicrafts and pottery. The OPC would help them do business as an enterprise and give them an opportunity to start their own ventures with a formal business structure.
One person company (concept) is quite revolutionary… This will give the individual entrepreneurs all the benefits of a company, which means they will get credit, bank loans, access to market, limited liability, and legal protection available to the companies.
