A Comparative Study on Limited Liability Partnerships (LLPs) and One Person Companies (OPCs) in India - An Innovative Business Model for Entrepreneurial Development

Abstract

This study aim to examine that the number of companies and state/UT-wise status of registered and active in India, companies registered economic activity-wise and authorized capital wise as on 31.12.2018 in India. It also investigates growth, economic activity-wise registered and active limited liability partnerships (LLPS) and one person companies (OPCs). This study is used various secondary data from different organizations. In this study used various statistical tools such as percentage, tables, charts, correlation and paired t tests are used for analysis and interpretation of data. This study results found that total number of companies in India shows 18,37,345. Out of them 6,54,611 companies were closed and 1,136,243 active. In the registered and active companies state of Maharashtra secured first rank in registered 3,64,309 and 2,29,904 active, second rank secured by Delhi 3,29,374 registered and 2,00,219 active. Third rank secured by West Bengal 2,00,139 registered and 1,28,157 active companies. Totally 1,23,468 LLPs with the obligation of contribution Rs.78,16,775.40 (In Rs Lakhs) were in active up to 31.12.2018. Totally numbers of active OPCs were 20,896 with authorized capital of Rs. 55,920.11 (Rs in Lakhs) up to 31.12.2018 in India. This study finally suggested that ministry of corporate affairs, Reserve Bank of India, ministry of commerce, non-banking and banking financial institutions felicitates to take imperative steps to provide financial assistance at concessional rates, tax holidays, and subsidies for existing as well as new entrepreneurs. This study finally concluded that LLPs and OPCs are now recognized as an innovative business vehicle in the future year's positive effects in LLPs and OPCs creates significant impacts and it definitely has a shows potential and prosperous opportunity for entrepreneurs in India. Key words: LLP, OPC, MCA, Companies Act 2013, Investments, Investors