
Proprietorship
(13147)
Assistance for GST registration with 1 year LEDGERS Accounting software license for Invoicing, GST E-invoicing and GST filing through LEDGERS.
2 Exclusive Offers
2 Exclusive Offers
Offers and discounts



Difference between One Person Company and Sole Proprietorship
One Person Company (OPC) and Sole Proprietorship are two different legal structures for small businesses. Both facilities cater to entrepreneurs who wish to operate their businesses with minimal complexity and compliance requirements. However, they differ significantly regarding legal identity, liability, ownership, and governance. In this article, we will explore the differences between One Person Company and Sole Proprietorship, shedding light on their unique characteristics and helping entrepreneurs make informed decisions when selecting the appropriate structure for their business ventures.What is an Open Person Company?
An OPC is a hybrid type of business that offers features of Sole proprietorship and a Private Limited Company. The OPCs are governed under the Companies Act of 2013. A Person Company is treated as a separate legal entity with limited liability. All the OPCs must hold at least one board of directors meeting each half of the year.What is a Sole Proprietorship?
The Simplest form of business to be carried by individuals is the sole proprietorship. It is not a legal entity like a partnership or a private limited company. The costs for starting a sole proprietorship are minimal. The advantage is that there is no need to enter the board and annual meetings. The Proprietorship and the proprietor are considered to be the same legal entity.Opc vs. Proprietorship
Difference | One Person Company | Sole Proprietorship |
Registered | It is registered under MCA and Companies Act,2013 | Is not a registered type of entity |
Legal Status | Separate Legal Entity | The sole proprietorship and proprietor are considered to be one single entity. |
Liability | The Liability is limited | Unlimited Liability |
Transferability | Can be transferred to the Nominee | It cannot be transferred |
Taxation | Taxed as at 30% of profits plus cess and surcharge | Taxed as an Individual. |
Annual filings | Filed with the ROC | Income tax returns with the ROC. |
Perpetual succession | Existence if independent of the sole promoter and the Nominee | The proprietorship comes to an end with the retirement of members |
Related Guides
Popular Post

Starting a small business can be a transformative venture, offering the exciting opportunity...

Tax deduction at source, shortly and popularly known as TDS, was introduced by the Income Tax...

Goods & Services Tax Certificate is issued to people who are registered under GST...

GST registration applies to all individuals and entities supplying goods or services in India. GST...

Gift tax in India is applied when the value of the received gift exceeds ₹50,000 in the...

The Union Budget 2025 has brought significant changes to India’s personal income tax structure, raising the...

The Goods and Services Tax (GST) is an indirect tax system introduced in India in 2017. It functions...

A trademark search is simply checking if another person or organization does not already own the...

Section 194H of the Income Tax Act in India mandates the deduction of Tax at Source (TDS) on commission or brokerage...

Section 80G Deduction is a facility available in the Income Tax Act which allows taxpayers to...

The Income Tax Department (ITD) has not provided specific guidance on crypto taxes for Indian investors. However...

Internal audit applicability is a critical concept for companies in India, impacting various...

In the business world, two main types of companies exist: private company and public company...

Ministry of Finance vide a Notification No 05/2022- Central Tax (Rate) dated 13.7.2022 has issued...

The Central Board of Indirect Taxes and Customs (CBIC) has recently announced an extension...

Depreciation is a key concept in finance and accounting. It helps us manage how the value of...

Form 10IA of the Income Tax Department must be filed by taxpayers claiming income tax deduction...

The Goods and Services Tax (GST) system in India has been a significant reform in the country's...

India's Gross Domestic Product (GDP) benefits significantly from the substantial...

The Finance Act, 2023 introduced the MSME 45-day payment rule under Section 43B(h) of the Income Tax Act...

The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, was announced by Union Finance Minister...