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Companies Act 2013, which introduced the revolutionary concept of One Person Company (OPC) and has allowed to create a completely new type of business. In 2005 Dr. JJ Tehrani’s expert committee advised OPC. bookmygst offers a new bracket of opportunities for those looking to starting their own business that have a structured business. OPC provides the new businessman all the advantages of having a private, limited business. This includes access to bank loans, credit as well as limited liability and legal protection for their business. While the concept behind OPC is new in India but it has been an extremely effective method of business in UK and several European countries for quite a long time.
The history of One Person Company (OPC).
The New Companies Act, 2013 was approved by the Parliament in the year 2013. Some of the provisions of New Company’s Act 2013 took effect on the 20th of September, 2013, while the majority of sections became effective on the 1st April 2014. New concepts were introduced into India’s Corporate Legal System by the Companies Act, 2013. These concepts were not included in the 1956 Old Companies Act. If you want to find gst for proprietorship firm look up Bookmygst.
The concept of OPC is quite innovative. It offers entrepreneurs on their own all the advantages of a corporation, which means they will receive bank loans, credit, and access to markets with a limited liability, as well as legal protection available to companies.
Prior to the law’s introduction in effect, at most two shareholders were required to get a business founded. Now the idea of OPC will open up huge opportunities for small-scale business owners and traders, including those who work in the fields of handicrafts pottery etc. They were previously working as artisans and had no legal company. Today, the OPC will allow them to do business with ease as an organization and provide them the opportunity to start their own business with a formal structure for business. Additionally, the level of compliance provided by an OPC is significantly less than filing returns, balance sheets audits etc. Bookmygst lets you search for proprietorship registration in Bangalore.
International Comparison of Countries:
The concept of OPC is a new concept in India however, this idea has been already been prevailing and running successfully in many other countries like China, Singapore, France, and U.S.A. The Great Britain was the nation which pioneered the idea for the concept in its decision in Saloman & Saloman Co Ltd. The concept was granted statutory recognition in Britain in 1925. The concept was adopted by many countries including. OPC within their own Corporate law. OPC rules for incorporation and the structure can differ from one nation to another, but their primary goal is encouragement of entrepreneurship as well as the speeding up their economic growth.