India sees setting up of 478 ‘one-person cos’ till August
In August alone, 218 one person companies (OPCs) have been registered in the country. As the name suggests, these entities would only have one member.
According to data compiled by the Corporate Affairs Ministry, 478 OPCs have been set up till 31 August and together they have an authorised capital of Rs 11.95 crore.
In terms of economic activity, a maximum number of 275 OPCs are in business services, followed by community, personal & social services (54), manufacturing (39), and trading (36).
A first of its kind in the country, OPC was introduced through the new Companies Act and the relevant provisions came into force from 1 April. Corporate Affairs Ministry is implementing the Act. As per official data, a total of 218 OPCs were registered in August and their collective authorised capital stood at Rs 4.63 crore.
During that month, as many as 132 such entities were set up in the business services segment. OPCs are expected to facilitate easier access to funding sources for entrepreneurs.
Many nations, including the United States, China and Singapore allow business to be structured as OPCs.
Meanwhile, there were about 14.16 lakh registered companies in the country at the end of August.