The Legal Effect of One-Person Company (Jurisprudential and Legal Study)

Abstract

One-person company is a special type of company, as the concept of a company is generally based on partnership involving a number of partners, which is not available for one-person company. Most legislation does not include this type of company due to its nature, which deviates from the traditional concept of company.

The company is generally a gathering of two or more people for profit; A common interest where partners pursue a particular business aims to achieve a common interest, and profit is often the main driver of companies' founding. However, one-person company, whether natural or legal, is different. One person establishes the company alone by allocating a sum of money to it for investment. That person and the company are financially independent so that he is not liable for any obligations related to the one-person company except within the limits of the amount allocated.