What Makes A Single Firm Successful In Its Business Model?

Companies Act 2013, which created the groundbreaking concept of One Person Company (OPC) and has allowed to create a completely new type of company. In 2005 Dr. JJ Tehrani's expert committee suggested OPC. OPC provides a whole new range of possibilities for those who wish to create their own businesses with an organized structure. OPC will provide the young businessman with all the benefits of a private limited company. This includes access to bank loans, credit, limited liability and legal protection of their company. OPC isn't a novel concept in India and has been a successful business model in the UK as well as other European countries for quite a long time.

The background of One Person Company (OPC).
The New Companies Act, 2013 was approved by Parliament in the year 2013. Certain provisions of the New Companies Act 2013 came into force on September 20th, 2013 while the majority of sections came into force from 1st April 2014. The Companies Act, 2013 has introduced new concepts into the Indian Corporate Legal System which were not part of the erstwhile Old Companies Act, 1956. Bookmygst is a fantastic site to find gst for proprietorship firm.

The benefits of OPC:
The idea behind OPC is quite innovative. It gives the individual entrepreneurs all the benefits of a business that is, they can receive loans from banks, credit and access to markets, limited liability and legal protection that companies can avail.

Prior to the law's introduction in force, only two shareholders were required for a company to be started. The idea of OPC will open up huge opportunities for entrepreneurs of all sizes and traders, including those who work in areas of handicrafts, pottery etc. They previously worked as artisans but were not a legal company. Now the OPC will help them to do business with ease as an enterprise , and offer them the chance to begin their own venture with a formal structure for business. Further, the amount of compliance provided by an OPC is significantly less than the filing of balance sheets, returns, audit etc. Bookmygst allows you to find proprietorship registration in Bangalore .

Comparative Analysis of Inter-Country Analysis
The concept of OPC is new in India but the concept has been already been prevailing and successfully implemented in many other countries like China, Singapore, France and U.S.A. Through its decision in Saloman & Saloman Co Ltd, Great Britain was the first nation to allow this concept. The concept was officially recognized as a legal recognition in Britain in 1925. The idea was adopted by several countries including. OPC within their own Corporate law. However, the structure or perquisites for the incorporation of OPC could differ from one the country in which they are incorporated, but the principal motive behind it is the same that is to encourage entrepreneurship and accelerate their economic growth.