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This is my online presentation on the subject "One Person Company – An entrepreneur friendly business organization" - a Research Paper contributed for University Grants Commission Sponsored National Seminar organized on 20th March, 2015 by Mahatma Gandhi University, Nalgonda, Telangana State, India.
Entrepreneurs always look for new bundle of opportunities and look forward to start or convert their own ventures with a structure of organized business. Till recently, if anyone wanted to set up and register a Private Company, at least two persons are needed as shareholders, because the law mandates 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 recognized as a separate entity.
In order bring significant fillip to new or existing entrepreneurs with micro or small-scale business and to enable them carry their respective business organizations on par with global standards, Government of India has introduced One Person Company (OPC) through the Companies Act, 2013. OPC concept has opened the doors for those entrepreneurs who are looking to set up a Company all by themselves. It is a right solution for such enterprising entrepreneurs to form, register and run a Company with only one Member [ Shareholder ]. OPC can work like proprietorship but it holds the status of Company and of course enjoys the benefits that come with it like, access to credits, Bank loans, limited liability, legal protection for business, access to market etc., all in the name of a separate legal entity. This concept of OPC is new in India, but it has been a very popular and successful form of business in Singapore, USA UK and several European countries since a very long time now.
This paper aimed at discussing key aspects and features of One Person Company form of business organization offered for budding business minds as well as existing enterprises.