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Adv.Shine Thomas (Advocate)     11 September 2008

One man company

Please clarify the term-One man company


 3 Replies

Bharti (Professional)     11 September 2008


One man company id a company where in the entire share holding is with one person.How?

1- As per CA, a private company should have minimum of two share holders. say out of 10000 shares Mr. A holds 9999 shares and one share is held by Mr. B as a nominee of Mr A (  the beneficial interest of that one share lies with Mr. A and Mr. B will only be the registered share holder) (a declaration u/s 187C of comapnies act is required to be filed for holding beneficial interest)


Now in this case virtually the entire capital is held by Mr.A . you can say that control lies in the hands of A

(  A can be a body corporate also)

Similar is the case , when the company isa public limited company.

7 share holders requirement

9993 shares in the hands of one person ( body corporate)

7 shares in the hands of seven different persons (body corporates and the beneficail interest in these seven shares lies with the majoe share holder


this is done just to comply with the requirement of law and to keep the control of the company in the hand of one person.



Hope the above will give you a clear idea about ONE MAN COMPANY




Adv.Shine Thomas (Advocate)     11 September 2008

Thanks for your valuable information

ca.bhupendrashah (FCADISA)     11 September 2008

also read new bill on Companies act

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