A Study on Growth and Impacts of One Person Companies (OPCs) In India- A Innovative Business Vehicle for Small and Medium Scale Entrepreneurs

Abstract

Objectives: This research attempts that the impact of One Person Company (OPC) registered in India. It also examines the growth and investigates economic activity-wise of registered One Person Company (OPC) as on 30th June, 2018.The present research study methodology divided into methods data collection and tools used for analysis and interpretation of data. The primary division focuses with the data collected for the present study and the secondary division consists of the mathematical and statistical tools used for the purpose of analyzing and interpretation of data. In this study used descriptive statistical tools such as percentage analysis, tables, and charts are used for analysis and interpretation of data. Results and findings: This study found that the total number of One Person Company registered in India as on 30th June, 2018 showed at Up to 30th June, 2018, a total number of 18,153 (OPCs) were registered with collective authorized capital of Rs. 461.06 crore. Economic activity wise classification of OPCs up to 30th June, 2018 discloses that the highest number of OPCs were in Business Services sectors11,613 followed by Community, Personal & Social Services sectors 1,908, Manufacturing sectors 1,385 and Trading sectors 1,296. Conclusions and suggestions: This research study concluded that the new Company Act 2013 introduced “One Person Company” is a progressive and innovative corporate governance, improved disclosures and transparency, facilitation of responsible entrepreneurship, increased accountability of company administrations, protection of small and minority investors and stricter enforcement processes. This research finally suggested that the government of India, state governments, RBI, Ministry of corporate and Department of Industrial Policy and Promotions(DIPP) should revise existing policies and should implementing innovative policies for growth one person companies in India and also provides monetary and non-monetary benefits for Indian and foreign investors. Key words: Company Act 2013, One Person Company (OPC), Entrepreneurship, Investments, Corporate Governance.