11th Class Business Studies Forms Of Business Organisation Question Bank Forms Of Business Organisation (Higher)

  • question_answer
    Explain the features of one Person Company.


    Ans.     One Person Company is defined in Sub- Section 62 of Section 2 of The Companies Act, 2013, which reads as follows:
    (i) 'One Person Company means a company which has only one member'
    (ii) It shall also be important to note that Section 3 classifies OPC as a Private Company for all the legal purposes with only one member. All the provisions related to the private company are applicable to an OPC, unless otherwise expressly excluded.
    (iii) The only exception provided by the Act to an OPC is that according to the rules only "Naturally-Born" Indian who is also a resident of India is eligible to incorporate an OPC. Meaning thereby, the advantages of an OPC can only be obtained by those Indians who are naturally born and also a resident of India. At the same, it shall also be worth mentioning that a person cannot form more than 5 OPC's.

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