Sole Proprietorship and OPC i.e. One Person Company are two forms of business structure which sounds similar but there is difference between the two. Both are controlled by single owner yet they function separately.
A brief comparison between Sole Proprietorship and One Person Company is given below:
| Particulars | Sole Proprietorship | One Person Company |
| Regulation | General | Companies Act, 2013 |
| Registration | Sectoral registrations as may be applicable to a particular business. | Registered with MCA |
| Liability | Unlimited | Limited |
| Minimum Members | One | One |
| Maximum Members | One | One |
| Directors | —- | Minimum One and Maximum Fifteen |
| Structure Type | Sole structure | Company structure |
| Management | Proprietor | Director(s) |
| Bank funding | Low possibility | Comparatively higher |
| MCA Compliances | —– | Applicable |
| Income Tax Compliances | Lesser | More |
| Cost of formation | Nominal | Nominal |
| Brand | Less visible | More visible |
Summary
Both the Sole Proprietorship and OPC are two separate forms of business structure and the choice of a particular structure depends upon various factors.
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(Republished with amendments)
