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.