Most entrepreneurs who have only recently launched their companies are in a dilemma when it comes to deciding the appropriate business structure to register their companies. One-person companies (OPC), as well as sole proprietorships, appear to be similar however, specific differences are listed below. It is possible to choose the most appropriate company structure by taking the details.

If you're launching the business and are eager to have full control over it, there are two options One-person business (OPC) and a sole proprietorship. As you'd imagine, each has advantages and disadvantages however, it is impossible to claim that one is superior to the other with only one slight distinction. 

The simple answer is that Person Company registration is a better choice for medium-sized businesses and sole proprietorship registration is ideal for small companies. Let's take a look at the distinctions between these two and determine which one suits your company better.

One Person Company

Separate entity: the owner and the company are seen as separate entities.

Limited liability - the owner's liability is limited to the participation in the business.

Taxation of companies - the one-person firm (OPC) has been registered as a limited private business and is therefore taxed under the Income Tax Act for private corporations.

Succession A designated nominee could be appointed to lead the business should there be the demise of a management member. The nominee must be an Indian citizen and an Indian resident. India.

•      The company registration adds credibility to the organization
•      It is easy to obtain money or loans for the business since lenders will trust the business that is registered.
•      Perpetual succession
•      If the owner is unable to continue running the business or dies, the nominee may assume the business

Sole Proprietorship