Over 1,400 one-person companies come up in just nine months

More than 1,400 one-person companies, a majority of them engaged in business services, have been set up in just nine months starting April 2014 when regulations allowing such entities came into force.

On an average, the figure translates to 155 new one person companies (OPCs) being established every month from April-December 2014 period.

The concept of OPC was introduced through the new Companies Act, which came into force from April 1, 2014. These entities are expected to facilitate easier access to funding sources for entrepreneurs.

Latest data compiled by the Corporate Affairs Ministry shows that up to December 31, 2014, a total of 1,403 OPC were registered with it and their collective authorised capital stood at Rs 31.31 crore.

In terms of economic activity, as many as 775 OPCs have been registered in the business services category followed by 196 such entities in the community, personal and social services segment.

There were 135 OPCs in trading and 106 in manufacturing categories, according to the Ministry, which is implementing the Act.

In December last alone, 277 OPCs were set up and their total authorised capital stood at Rs 5.90 crore.

Overall, there were little over 10 lakh active companies in the country at the end of December last year whereas total count of registered entities stood at more than 14.39 lakh.

Out of the registered ones, more than 1.39 lakh companies have been classified as 'dormant' since they have not made their statutory annual filings for three consecutive years.

Among the active companies, about 66 per cent have authorised capital less than or equal to Rs 10 lakh each and only around two per cent have authorised capital of above Rs 10 crore each.