Passage of the Companies Bill in Parliament will pave the way for a new concept of ‘one person’ company’ (OPC). Under the Companies Act, 1956, it required at least two people to form a company. The new concept will provide an opportunity to Indian entrepreneurs to enter the corporate world without even adding a family member to the venture, which they, at times, do just for the sake of a second name. “This will bring the unorganised sector of proprietorship into the organised version of a private limited company. The organised version of OPC will open the avenues for more favourable banking facilities, particularly loans to such proprietors,” says Pavan Kumar Vijay, managing director of Corporate Professionals, a corporate financial advisory firm.
CAclubindia
