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One Person Company

One Person Company

The new concept that has been evolved that was never been used and implemented in the companies act, 2013 was One Person Company Concept. This a whole new way to start a company or business flexibility of protecting limited liability that sole proprietorship or partnership.

Definition of One Person Company

A company with only a single person member as its board member of a company is nothing but the subscribers to its memorandum of association or its shareholder. So a person company is that which has only a single member of the shareholder.

Feature Of One Person Company

  • Single Member- as the name describes its self one person company as only the owner is the shareholder of the company
  • Private Company-  under section 3(1)(c) of companies act can allow forming a single person company.
  • Nominee- a unique feature that makes it so special kind of company is that sole member of the company which is to be registered as the nominee of the company
  • No Minimum Paid-Up Share Capital- this type of company has advantages as no such rule has been prescribed under Act,2013 for minimum paid-up capital of the one-person company.