A large number of Indian Entrepreneurs are looking forward to the start of the most awaited One Person Company or Incorporation in India. It is seen that there stand to be similar features between the One Person Company and the Private Limited Company. This feature is prominently shown by the Companies Act 2013. After seeing this, one can be definitely sure that there are a number of Indian entrepreneurs who are looking forward to the One Person Company. They show a tremendous amount of interest regarding this issue and want to start a One Person Company as soon as possible. This article will help you to know the various benefits of the One person company and how to incorporate the whole process.
One Person Company
Dr. Jamshed J.Irani in his famous report of Company law stated the concept of the One Person Company. In this way, the whole concept was introduced in 31, May 2005. According to the report, Dr. Irani suggested that with the increasing usage of the information technology the government will very soon empower the entrepreneurs. Avery strong service sector will also lead to this issue. Therefore it is time for the people to develop an idea about developing and participating in the marketplace. An association of persons should be formed and therefore an economic entity consisting of a single person should also be made. This association is known as the One Person Company. A much simpler regime of can also be formed which may lead to the formation of the One person Company. Simpler associations can be formed by exemptions. In this way, a single entrepreneur does not fritter away his time. Also, the energy and resources are saved.
In this way, the “One Person Company” was formed in the Companies Bill of 2013. The bill finally got assent in the Lok Sabha in the year 2012 dated 18 December. The Companies Act was formed finally on 29th August 2013 when they got assent from the President of India.
Benefits of One Person Company
Before the One Person Company was introduced there was only the availability of the Limited Liability and the Continuous Existence. These two together formed the association of persons which was in turn known as the Private Limited Company or Limited Liability Partnership Company. After the One person company was established they got the feature of the Limited Liability and the One Person Company. This is known as an entity with only one member. This, in turn, helps the company to follow the law which helps the person to designate himself in the Memorandum of Association. The person of the death of the subscriber can designate himself to the contract. In this way, an adequate safeguard makes sure that the particular entity continues throughout irrespective of the member to be living or dead.
A general meeting is held by all the companies every year. Other meetings also continue to take place. The meetings should be held within fifteen months duration along with the annual meetings. On the other hand, the One Person Company is not permitted to hold the annual meeting which is also known as an extraordinary meeting. In the meeting, a particular resolution is signed by the single director after looking into the matter for minutes.
It is required by all the companies to prepare a file financial which statement which will include the balance sheet, profit and loss account, the cash flow system and all the required changes in the equity and explanatory notes. One Person Company, on the other hand, does not require such statement.