Difference between Sole Proprietorship and One person company

1. Registration

  • 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.

3.Members liability

  • 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.

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