A Critical Evaluation Of The Concept Of One Person Company

Raunak Jain, Symbiosis Law School, Pune

ABSTRACT

One Person Company is a perception which has taken the classical concept of limited liability and joint stock and added features of sole-proprietorship to the same, thereby resulting in the addition of the favourable features of such sole-proprietorship concern to a company. These favourable features are: increased control and decision-making power, exclusion of lengthy and complicated procedures and legal hassles and of course, the existent limited liability. This research paper encompasses the provisions relating to a One Person Company in India, as legislated by the Parliament in the Companies Act, 2013. Moreover, a comparative perspective with regard to One Person Companies and similar concepts from jurisdictions of foreign statutes have also been presented. The research methodology in the paper is secondary or doctrinal research, where bare provisions, articles, online articles and committee reports have been referred to. The obvious drawback in the research paper is the lack of material available on One Person Companies which is a new aspect of company jurisprudence, for which reason, there is a scarcity of scholarly research and cases. The paper also contains a detailed analysis and critical review of OPC as a concept.

Keywords: One Person Company (OPC), Single-member, Limited Liability.