Q. What is a difference between sole Proprietorship and One Person Company (OPC)?
by Paras Mehra 2.11K
In a move to increase corporate business in India, the government introduced the concept of One Person Company (OPC) in the year 2013. Since then it is taken as a substitute for sole proprietorship entity in India. Further, there is no denying fact that OPC company is far more superior and better than the traditional sole Proprietorship business.
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Sole Proprietorship |
One Person Company |
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Personal Assets are not safe under proprietorship, its biggest disadvantage. |
Its limits your liability and hence personal assets are safe. |
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There is no legal registration of proprietorship; it is registered based on the local license like VAT, Service Tax, etc. |
It is one of the recognised and organised form of business. |
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It is not recognised and lacks trust factor |
Since; it is registered form of business, |
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There is no compliance cost under proprietorship in India. |
The yearly compliance cost will be there as it needs to get audit, filings, etc. |