Advertisements
Advertisements
Question
Explain the following term/concept.
One Person Company
Short/Brief Note
Advertisements
Solution
(1) A company, in which one person holds almost the whole of its share capital and has other members just to meet the legal requirement of a minimum number of members, is known as one person company. It is a private company.
(2) It has to comply with all the formalities of a private company that are specified in the Act or rules. The concept of a One-person Company was introduced through the Companies Act, 2013.
(3) It is managed, operated, and controlled by a Single-member called promoter. The liability of its member is limited to the extent of his capital investment in the company. It is superior than Sole Trading Concern of business organisation.
shaalaa.com
Is there an error in this question or solution?
