Last updated: June 5th, 2023 4:34 PM
Difference between One Person Company and Sole Proprietorship
One Person Company (OPC) and Sole Proprietorship are two different legal structures for small businesses. Both facilities cater to entrepreneurs who wish to operate their businesses with minimal complexity and compliance requirements. However, they differ significantly regarding legal identity, liability, ownership, and governance. In this article, we will explore the differences between One Person Company and Sole Proprietorship, shedding light on their unique characteristics and helping entrepreneurs make informed decisions when selecting the appropriate structure for their business ventures.What is an Open Person Company?
An OPC is a hybrid type of business that offers features of Sole proprietorship and a Private Limited Company. The OPCs are governed under the Companies Act of 2013. A Person Company is treated as a separate legal entity with limited liability. All the OPCs must hold at least one board of directors meeting each half of the year.What is a Sole Proprietorship?
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