Difference between Sole Proprietorship and One person company
- In Proprietorship, registration of the company is Not Compulsory. A proprietor can register if he wants to register his company.
- In One Person Company, the company Can be registered under MCA and Companies Act 2013.
2. Legal status of an entity
- A proprietorship is Not considered as a separate legal entity
- One Person Company is a separate legal entity.
- A Proprietor has Unlimited liability.
- In One Person Company, liability is limited to the extent of share capital.
4. Minimum number of member
- In a Proprietorship, there is only a Sole Proprietor.
- In One Person Company, there is a minimum number of 1 person is essential.
5. Maximum number of members
- A maximum 1 person is allowed in Proprietorship
- A maximum of 2 people is allowed in One Person Company.
Sole Proprietorship and One person company are very different from each other. A proprietorship is not a separate legal entity whereas one person company registration is a separate legal entity. Not only this but also varies in terms of existence as a proprietorship is come to end the on death or retirement of the member whereas One Person Company’s Existence is independent of directors or nominee.
What are the requirements for OPC Registration?
Disadvantages of One Person Company