{"id":1456,"date":"2018-07-02T12:55:55","date_gmt":"2018-07-02T12:55:55","guid":{"rendered":"https:\/\/companyregistrationonline.in\/?p=1456"},"modified":"2025-08-20T05:29:56","modified_gmt":"2025-08-20T05:29:56","slug":"sole-proprietorship-and-one-person-company","status":"publish","type":"post","link":"https:\/\/companyregistrationonline.in\/blog\/sole-proprietorship-and-one-person-company\/","title":{"rendered":"Difference Between Sole Proprietorship and One person company"},"content":{"rendered":"\n<p>Here are the differences between about sole proprietorship and one person <a href=\"https:\/\/companyregistrationonline.in\/\">company registration<\/a> you need to know:<\/p>\n\n\n<h2 class=\"fusion-responsive-typography-calculated\" style=\"--fontsize: 25;line-height: 1.3\" data-fontsize=\"25\" data-lineheight=\"32.5px\"><strong style=\"color: var(--h2_typography-color);font-family: var(--h2_typography-font-family);font-size: 24px;font-style: var(--h2_typography-font-style,normal);letter-spacing: var(--h2_typography-letter-spacing);text-align: justify\">Sole Proprietorship and OPC<\/strong><\/h2>\n<h3 class=\"fusion-responsive-typography-calculated\" style=\"text-align: justify;--fontsize: 18;line-height: 1.5;--minfontsize: 18\" data-fontsize=\"18\" data-lineheight=\"27px\"><strong>1. Registration<\/strong><\/h3>\n<ul style=\"text-align: justify\">\n<li>In a Proprietorship, registration of the company is Not Compulsory. A proprietor can register if he wants to register his company.<\/li>\n<li>In a <a href=\"https:\/\/companyregistrationonline.in\/opc-registration\/\">One Person Company<\/a>, the company can be registered under the <strong>MCA<\/strong> and the Companies Act 2013.<\/li>\n<\/ul>\n<h3 class=\"fusion-responsive-typography-calculated\" style=\"text-align: justify;--fontsize: 18;line-height: 1.5;--minfontsize: 18\" data-fontsize=\"18\" data-lineheight=\"27px\"><strong>2. Legal status of an entity<\/strong><\/h3>\n<ul style=\"text-align: justify\">\n<li>A proprietorship is not considered a separate legal entity<\/li>\n<li>A one-person company\u00a0is a separate legal entity.<\/li>\n<\/ul>\n<h3 class=\"fusion-responsive-typography-calculated\" style=\"text-align: justify;--fontsize: 18;line-height: 1.5;--minfontsize: 18\" data-fontsize=\"18\" data-lineheight=\"27px\"><strong>3. Members&#8217; liability<\/strong><\/h3>\n<ul style=\"text-align: justify\">\n<li>A Proprietor has Unlimited liability.<\/li>\n<li>In <strong>a one-person company<\/strong>, liability is limited to the extent of share capital.<\/li>\n<\/ul>\n<h3 class=\"fusion-responsive-typography-calculated\" style=\"text-align: justify;--fontsize: 18;line-height: 1.5;--minfontsize: 18\" data-fontsize=\"18\" data-lineheight=\"27px\"><strong>4. Minimum number of members<\/strong><\/h3>\n<ul style=\"text-align: justify\">\n<li>In a Proprietorship, there is only a Sole Proprietor.<\/li>\n<li>In a One Person Company, there is a minimum of 1 person is essential.<\/li>\n<\/ul>\n<h3 class=\"fusion-responsive-typography-calculated\" style=\"text-align: justify;--fontsize: 18;line-height: 1.5;--minfontsize: 18\" data-fontsize=\"18\" data-lineheight=\"27px\"><strong>5. Maximum number of members<\/strong><\/h3>\n<ul style=\"text-align: justify\">\n<li>A maximum of 1 person is allowed in a Proprietorship<\/li>\n<li>A maximum of 2 people is allowed in an <a href=\"https:\/\/companyregistrationonline.in\/blog\/be-ceo-with-one-person-company\/\">OPC Registration in India<\/a>.<\/li>\n<\/ul>\n<h3 class=\"fusion-responsive-typography-calculated\" style=\"text-align: justify;--fontsize: 25;line-height: 1.3\" data-fontsize=\"25\" data-lineheight=\"32.5px\"><strong>Conclusion<\/strong><\/h3>\n<p style=\"text-align: justify\">Sole Proprietorship and One Person Company are very different from each other. A proprietorship is not a separate legal entity, whereas <strong>a person&#8217;s company registration<\/strong> 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&#8217;s Existence is independent of directors or nominees.<\/p>","protected":false},"excerpt":{"rendered":"<p>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  [&#8230;]<\/p>\n","protected":false},"author":5,"featured_media":1468,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[558,560],"tags":[305,304,93,59,104,306],"class_list":["post-1456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-registration","category-one-person-company","tag-companies","tag-difference-between-sole-proprietorship-and-one-person-company","tag-one-person-company","tag-sole-proprietorship","tag-sole-proprietorship-and-one-person-company","tag-what-is-sole-propeitporship"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Difference between Sole Proprietorship and One Person Company<\/title>\n<meta name=\"description\" content=\"Both a Sole Proprietorship and one person company are beneficial. 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