Tuesday, August 22, 2017

One person company

One person company
The concept of One Person Company was introduced in the Indian company law regime by the enactment of the Companies Act, 2013 (the ‘Act’). This new concept was in furtherance of the objective of creating the necessary environment for the present global corporate structure in India. The main aim behind the incorporation of such a concept is to encourage entrepreneurs who wish to set up micro economic industry, but are in search of a business structure with less effort, time and monetary resource consumption in legal conformity. Under the Company Law 1956, there was a complete bar on an individual to start a company, the only option left with him was to have a sole proprietorship, as the erstwhile law required at least two people to form a company.

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