Business Standard reports that the draft Companies Bill 2007 has proposed a new entity called one-person company (OPC) that will be a private limited type of entity for an individual promoter. Currently, many individuals conduct business through proprietorship or partnership entities - both these forms have simpler compliance requirements but pose unlimited liabilities on the promoter(s). The OPC is expected to provide individual entrepreneurs the flexibility and low cost of proprietorship/partnership concerns while restricting their personal liabilities similar to a private limited company.
This bill is being studied by various departments of the government and if approved would go to the Parliament for legislative approval at some point in the near top medium term future.
This is a positive move for business people and will boost entrepreneurship in India.
Monday, November 26, 2007
India 'one-person company' proposal
Posted by Indian Finance Commentator at 10:10 AM
Labels: Sole Proprietorship in India, Starting a company in India
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3 comments:
What is the current status....Its been very long since you've updated this post.....
I want to establish a Web development company So please let me know the current status....
I would like to know more about the current status of this bill. Is there a way to track it?
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