Nearly 2,000 one-person firms come up in 11 months

Reflecting an increased interest among individuals to float firms, nearly 2,000 one-person companies have been set up in the country in 11 months since relevant norms came into effect last April.

The concept of one person companies (OPCs), introduced in the Companies Act, 2013, is expected to primarily benefit entrepreneurs and facilitate easier access to funding sources through an institutional establishment.

During the period from April 2014 to February this year, an average of 177 OPCs were set up every month with majority of them into business services, according to the latest data compiled by the Corporate Affairs Ministry.

The Ministry is implementing the Companies Act, 2013, whose most of the provisions came into force from April 1, 2014.

Till February end, there were 1,953 OPCs with collective authorised capital of Rs 44.83 crore.

In terms of economic activity, 1,063 OPCs are into business services followed by community, personal and social services (302), real estate and renting (168) and manufacturing (157).

As per the data, February alone saw setting up of 243 OPCs and their collective authorised capital stood at Rs 6.30 crore.

The maximum number of OPCs at 46 were registered in Delhi, followed by 42 in Maharashtra and 33 in Uttar Pradesh.

Many nations, including the United States, China and Singapore, allow business to be structured as OPCs.

Meanwhile, a total of 3,309 foreign companies were doing business in India as on February 28.

There were as many as 10.17 lakh active companies, or those that are regular with their filings, at the end of February.