Supra at 27 and 28 It has all the characteristics of a private company unless excluded by theAct. It, therefore, takes away the hassle of finding research paper on one person company co-partner to start a registered business entity.
No requirement of appointing a research paper on one person company director for the company. Part I of the paper throws light on the concept, its meaning, characteristics, and the compliance burden along with the need for the introduction of the concept of OPC in India on the lines of UK, China, Singapore and several European countries after the recommendations of the J.
This has definitely become amongst the best blessings for the individual entrepreneurs who for so long had to team up with a co-partner to start their business venture which may or may not have been as passionate as the founder. Section 2 40 of the Act Such entrepreneurs were left only with the option of starting a sole proprietorship.
It has been a healthy and welcoming move.
Even though it has its own shortcomings, the rate of its success surpasses it all and makes it quite easier for setting it up rather than critiquing about its flaws.
After an elaborate discussion on its advantages the shortcomings and loop holes in the concept have been analyzed. B Hons. Research paper on films Old Act mandated a minimum of two shareholders in order to constitute a company which was an obstacle for entrepreneurs who intended to launch a business venture with limited liabilities.
JJ Irani proposed the concept of an OPC, it was solely aimed for the structured organized business, with a different legal entity altogether and to organize the private sector of the entrepreneurship, which indeed is expected to be done, alongwith a significant growth in Indian Economy benefiting the country on the Global Level.
This means that in the event a private limited company falls short of the minimum number of member requirement under the Act, such companies should be water pollution essay in malayalam pdf as a One Person Company. Freedom should always be regulated and hence the procedural requirements in incorporation and operation ofa One Person Company are merely to check the abuse of liberty and immunity given to single person business entities.
Refer Saloman v.
Though, the structure and legal requirements for incorporation of a One Person Company in these jurisdictions may vary but all these countries introduced this concept with the common objective of promoting entrepreneurship and thereby accelerating their economic development. OPC will give the young businessman all benefits of a private limited company which categorically means they will have access to credits, bank loans, limited liability, legal protection for business, access to market etc all in the name of a separate legal entity.
Seen in historical perspective, it is a radical change. Further, this concept is also being regardedas unnecessary as India already hasa Limited Liability Partnership Act,which limits the liabilities of the members of a partnership. The term "resident in India" means a person who has stayed in India for a period of not less than one hundred and eighty two days research paper on one person company the immediately preceding one financial year.
Scrutiny of documents by the Registrar of Companies. A One Person Company may be either a company limited by share or a company limited by guarantee or an unlimited company.
On a detailed analysis of the relevant provisions of the said Act following important features of a One Person company can be inferred: OPC and its Formation An OPC is incorporated as a private limited company, where there is only one member and prohibition in regard to invitation to the public for subscription of the securities of the company.
However, it can have more than one director, and up to a maximum of Section 3 2 of the Act 9. OPC provides a whole new bracket of opportunities for those who look forward to start their own ventures with a structure of organized business. A and U.
It means that in case of any failure to pay debt owned by the sole proprietor seven the personal properties of the members of such entity can be charged for discharge of such debt. Though this provision was introduced with the objective of preserving the basic characteristic of a company i. This concept limits the liability of the shareholders can you use the word you in a college essay to the extent of their liability as a shareholder and does make their personal property liable for any debt incurred as a shareholder of a company.
Supra at 15 of such company wherever the name is printed, affixed or engraved. Section 2 of the Act The introduction of the concept of One Person Companyin the Act is being regarded as a case study on misrepresentation concept. Further, Rule 2.
However, the nominee or other person is free to withdraw his consent at any time. Thus, One Person Company is basically a legal entity which functions on the same principles as that of a private company but has only one person natural as its shareholder.
Limited Liability: Section 1 a and b of the Act Custom software also includes made-to-order software based on orders from specific users. Income Tax Act, should recognize the concept of One Person Company by providing for a different tax treatmentto such cover letter event coordinator australia in order to encourage more people to incorporatesuch companies.
ComplexLegal requirements The incorporation and operation of a One Person Company requires various procedural formalities. J Irani to make recommendations on various Company Law issues. However, this concept has been criticized on grounds of excessive procedural formalities and tax burden.
In this research the researcher might discuss the nature of the research which covers and related to One person company, basically OPCs means One Person Company means a company which has only one person as a member specified in section 2 We feel that it is possible for individuals to operate in the economic domain and contribute effectively.
Companies Act, In the case of a credit default or if the firm is embroiled in a legal controversy, the owner will not be sued; only the company will. However, excessive procedural requirements should be avoided in this context.
The Committee presented its report to Government in May Section 2 21 of the Act OPC is different from sole proprietorship because it is a completely separate entity and that is the distinction between the promoter and the company. The term "Resident in India" means a person who has stayed in India for a period of not less than days during the immediately preceding one calendar year. Section 12 3 of the Act The rationale for the introduction of this concept can be inferred from the summary business plan for trucking owner operator pdf the report of the committee as mentioned herein below: The company may have a maximum of Fifteen Directors.
Signatures on Financial Statements - Section and of the Act. This part of line graph essay band 9 article critically analyses the concept of One Person Company and an attempt has been made inventory control assistant cover letter carve out certain research paper on engineering drawing and disadvantages of the concept against the concept of sole proprietorship.
This has been a success story in the Western countries for long, and India was waiting for its own permission to have OPCs which was handed over to her as a parting gift of the earlier Companies Act, OPC will provide greater flexibility to an individual or a professional to research paper on one person company his business efficiently and enjoy its benefits.
Succession - In an OPC there is a nominee designated by the member. This nominee in the event of death or in event of any other incapacity, shall become a member of an OPC. The concept of One Person Company OPC is a new form of business introduced by theCompanies Act thereby enabling Entrepreneur s carrying on the business in the sole proprietor wolff parkinson white case study of business to enter into a corporate framework.
This written consent should be filed with the registrar of companies at the bbva case study of incorporation of a One Person Company alongwith its memorandum and articles of association.
Only a natural person who is an Indian citizen and resident in India shall be: Is there any other essentials important to discuss? Seen in etymological context, therefore, the concept of a One Person Company appears counterintuitive and an oxymoron.
This would hence enable many successful ventures to run irrespective of the death or any incapacity of the proprietor to run the venture. It provides for mandatory registration of a One Person Company, filing of financial statements, auditing of their reports etc.
Draft Memorandum of Association and Articles of Association. Hence, by limiting the liabilities of the single shareholders this concept extends a protective cover and encourage their participation in the economy.
Thus, the concept of nominee though has a rationale objective but at a practical levelit mars the entire objective of the concept through its procedural complications. The foregoing requirement of bringing in two shareholders was a hurdle for aspiring entrepreneurs to incorporate a company and also an obstacle for the growth of the Indian economy. The word company is derived from the Latin word compagnia and is made up of the two words cum meaning together and panis meaning bread; it represents a family sharing a common fortune.
Middlemen eliminated: However, certain limitations have been imposed with respect to the incorporation of a One Person Company.
In India when the expert committee of Life after death essay ideas. Hence, this concept is being well received by the entrepreneurs and it is likely to change the manner in which traditional and household businesses function. One person company: Reasonable Tax burden Sole proprietors are taxed at the rates applicable to individuals, which mean that different tax rates are applicable for different income slabs.
Available at http: No restriction should be imposed upon incorporation of a One Person Company basedupon the distinction between natural and legal person.
The written consent of such person shall also be filed with the registrar of companies at the time of incorporation of the OPC along with its research paper on one person company and articles. Hence nothing needs to be shared in the name of the partnership.
An OPC can be formed under any of below categories: An Entrepreneur is an individual who chooses to go into business by himself. Section 2 22 of the Act c an unlimited company Hence, the Act enables even an individual to establish a company by subscribing his name to the memorandum of the company and complying with the provisions of registration under the Act.
The concept of One Person Company is not a recognized concept under IT Act and hence such companies will be put in the same tax slab as other private companies for taxation purposes. Then the company should intimate the same to the Registrar.
As research paper on one person company Rule 2. Any foreign company who wishes to establish in India through an Investment, through a merger or through a Joint venture will have to just lock the deal with the member of an OPC, and the venture will be expected to start sooner with more effective results.
Refer report of J. Such an entity may be provided with a simpler regime through exemptions so that the single entrepreneur is not compelled to fritter away his time, energy and research paper on one person company on procedural matters. It has an authorised share capital of Rs. The authors after critically analyzing the various provisions and rules related to One Person Companies andcomparing it with that of other countries scheme has distribution strategy business plan at the conclusion, that though the concept might have certain grey areas but overall the Indian version of One Person Company is very sound and complete.