Here are the differences between about sole proprietorship and one person company registration you need to know:

Sole Proprietorship and OPC

1. Registration

  • In a Proprietorship, registration of the company is Not Compulsory. A proprietor can register if he wants to register his company.
  • In a One Person Company, the company can be registered under the MCA and the Companies Act 2013.

2. Legal status of an entity

  • A proprietorship is not considered a separate legal entity
  • A one-person company is a separate legal entity.

3. Members’ liability

  • A Proprietor has Unlimited liability.
  • In a one-person company, liability is limited to the extent of share capital.

4. Minimum number of members

  • In a Proprietorship, there is only a Sole Proprietor.
  • In a One Person Company, there is a minimum of 1 person is essential.

5. Maximum number of members

Conclusion

Sole Proprietorship and One Person Company are very different from each other. A proprietorship is not a separate legal entity, whereas a person’s company registration is a separate legal entity. Not only this, but also varies in terms of existence as a proprietorship comes to an end, the death or retirement of the member, whereas an One Person Company’s Existence is independent of directors or nominees.