What is the difference between sole proprietorship and opc?

OPC is treated as a separate legal entity under the Companies Act, 2013; sole proprietorship is not treated as a separate legal entity.

A Proprietorship Firm and OPC (One Person Company) both are the entities where a person is looking for the business without interfere of any other person such as Partner or co-founder.

Sole Proprietorship Firm is form of organisation, where the proprietor (owner) has the freedom of Policy and Decision making without interference of Third Parties and is best suitable for small businesses & unorganised sector. Here, the identity of Owner and Firm is not separate. The liability of the owner is unlimited and extends to the personal assets of the owner.

The One Person Company (OPC) is a type of Private Limited Company with higher flexibility. There is only one member (shareholder) in the OPC and one Director. Here, both shareholder and Director can be same person; hence control on business will not be diluted. The identity of both member and company is separate and the liability of the member is limited. OPC is best option for a single promoter to get entry in Corporate World with higher flexibility compared to other corporates.

Both organisations are suitable based on the requirements and nature of the business. You may consult our professionals at 89806 85509 or drop an e-mail at support@legalwiz.in for free to know which is the best suitable organisation structure for your business and requirements.

LegalWiz.in can help you to establish your Business as Sole Proprietor as well as One Person Company at affordable prices in simple and hassle-free manner.

What are the facts? What is the context?

Hey there, 

Here is the difference between OPC and sole proprietorship

Hope I could solve your problem.

With regards,

Samayeta Bal.

In terms of law and operation, an OPC differs from a sole proprietorship. The words "one person company" and "sole proprietorship" sound similar. OPC is considered as if it were a private firm, with its own legal entity and limited liability. A "One Person Company" is a business that has only one member. It is also treated as if it were a private corporation. Every one-person firm must hold at least one Board of Directors meeting in each half of the calendar year, with a minimum gap of ninety days between the two meetings. A sole proprietorship, unlike a partnership or a corporation, is not a legal entity. The benefit to sole proprietors is that they do not have to attend board meetings or annual meetings. Their signature appears on the returns. They work on a flexible schedule. Individuals must file a personal income tax return to report their earnings and losses. It simply refers to the owner of a company who is personally liable for its debts.