Difference between One Person Company and Sole Proprietorship

Last Updated On: Aug. 14, 2021, 9:43 p.m.
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ONE PERSON COMPANY Vs SOLE PROPRIETORSHIP

“OPC” provides the benefits of limited liability, brand image, access to banks funding and at the same time retaining the basic feature of “ONE MAN SHOW” because in OPC there is only one person who controls the company and can hire directors and employees for efficient management.

 

The below Table shows the difference between OPC and Sole Proprietorship:

SL.No Point of Distinction Sole Proprietorship One Person Company
01 Regulation General

Specific – Companies Act, 2013

02

Type of Structure

Plain Vanilla

Hybrid (Proprietorship + Company)

03

Business Registration

Not mandatory however Sectoral licenses are required as may be applicable to a particular business.

Mandatory Registration with MCA

04 Name

Generally Proprietor uses his own name

Must Contain word “OPC” to distinguish itself from other entities.

05 Entity

No Separate Legal Entity

Separate Legal Entity

06 Liability Unlimited Limited
07

Minimum Members

1

1
08

Maximum Members

1 1
09 Nomination Optional

Mandatory nomination of 1 natural person to form an OPC.

10

Directors

Not Applicable Minimum=1
Maximum= 15 unless increased
11

Type of Structure

Sole Form Corporate Structure
12

Ownership

Individual Proprietor Individual Shareholder

 

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