One Person Company: An Analytical Study

Abstract

Under the Companies Act of 1956 the definition of body corporate excluded from its scope ‘a corporation sole’ but the Act of 2013 has removed this exception and come up with a new revolutionary concept i.e. one person company (OPC). But there is a difference between the two. The concept of OPC allows a single person to run a company limited by shares, and Sole proprietorship means an entity where it is run and owned by one individual and where there is no distinction between the owner and the business, whereas it is not so in case of OPC. In OPC, the company will acquire corporate personality and enjoy all the advantages of a private company viz., limited liability, perpetual succession, separate property, capacity to sue and be sued, contractual rights, etc.