Kalki K, B.B.A. LL.B. (Hons.), Student of Faculty of Law, PES University, Bangalore, Karnataka
ABSTRACT
The J.J. Irani Committee1, in the year 2005, had proposed the inclusion of provisions which are in relation to ‘One Person Company’ (OPC). New ideas have been incorporated within India's corporate law system with the enactment or application of the CA, 2013 (Companies Act of 20132). The Act also introduced the notion of "OPC," which means that an individual can now form a business. The goal of incorporating this approach is to encourage entrepreneurship. It will assist entrepreneurs in obtaining specific services such as bank loans, comprehensive market access as a separate corporation, and a legal cover for their business. This allows individuals to pursue their entrepreneurial objectives even without having an army of employees. The committee highlighted certain reasons for recommending the same. The concept of OPC is quite unique compared to other kinds of companies in terms of its features, manner of functioning, compliance requirements and even its treatment under the tax regime is quite distinctive. This paper aims to delve into understanding the context within which the need for OPC arose and also to study the legislative backdrop in which such a company exists. Few other countries, like India, also provide for the incorporation of a OPC, although the legislative framework surrounding the same is different in each country. In reference to this, the paper aims to critically analyse the regulation of OPC in India.
Keywords: One Person Company, OPC, Companies Act, J.J. Irani Committee Report, Single member.
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