One Person Company – A Holistic Outlook

Abstract

Indian corporate law recognizes different kinds of companies under the Companies Act, 2013. One Person Company is a form of private limited company introduced by the Companies Act, 2013. The One Person Company is an alternative to the concept of sole proprietorship. It combines the benefit of sole proprietorship and the corporate form. With the growth of economy, the evolution of the new concept of One Person Company is significant to promote entrepreneurship and encourage people to enter into corporate domain. The One Person Company is provided with certain privileges with less compliance mechanism to provide opportunity to small and medium enterprises.  As defined in Section 2(62) of the Companies Act, 2013, One Person Company is a company with only one shareholder as a member. The One Person Company was introduced to promote the ease of doing business in India. The law relating to One Person Company is provided under the Companies Act, 2013 and the Companies (Incorporation) Rules, 2014. One Person Company can also avail the benefits under the start up India scheme. The One Person Company has its existence internationally. The concept of One Person Company provides opportunistic environment for the growth of Indian corporate sector and has several advantages. The One Person Company helps to overcome the problems of unemployment by making the youth self reliant through their innovative ideas.