Abstract

In todays contemporary world ,”one man business “has been replaced by “One person company” that brings the benefit of joint stock company enjoyed by private companies . A one-man business is referred to as a sole proprietorship , because under this a single person (known as sole trader) uses his own funds, skills and intelligence and is solely responsible for all the profits and risks associated with business. The sole proprietor can use his personal funds or can borrow funds on its behalf to run the business. He has full control on the business and take all the necessary decisions (managerial, financial, technical and others) himself and is personally liable for all the debts. Self employment is one of the objective of OPC (One Person Company) and OPC is an important element of Companies Act, 2013. OPC enjoys special privileges which other company does not enjoy related with board meeting and general meeting. Like in partnership the biggest limitation is unlimited liability which is removed by the Limited Liability Partnership form. Similarly, the biggest limitation of sole trader of unlimited liability is removed by the One Person Company. This paper conceptual in nature based on the secondary sources of data and explained and make you realise the concept and the importance of one person Company, its benefits and disadvantages and different rules related to its (one person company) members, formation and conversion.

Keywords: One Person Company (OPC), Sole Proprietorship, Skills and Intelligence, Limited Liability Partnership