A One Person Company or a Sole Proprietorship: What do I choose?

A One Person Company or a Sole Proprietorship: What do I choose?
  • If you’re a new entrepreneur and wish to run a business without seeking anyone’s help and have complete control over all operations of the business, it may be worthwhile for you to get registered under a One Person Company. This provides you the opportunity to be a 100% stakeholder of that company which would then be a separate legal entity. However, if you do choose to get registered as a Sole Proprietor the business would not be a legal entity separate from you.
  • As an entrepreneur if you wish to avoid getting into any trouble with litigation and liabilities, then a One Person Company will provide you a platform to run a company by restricting your contribution of liabilities. In a Sole Proprietorship, the owner’s liability is unlimited and in case of any loss the owner is liable for all of it.
  • Getting registered under a One Person Company would mean that your tax will be determined according to the Income Tax Act whereas in a Sole Proprietorship the owner’s income will be taxed as an individual’s income.
  • Another advantage of an OPC is that the existence of the company doesn’t have a dependence on the demise of the fellow members  and is therefore known for perpetual succession whereas in the case of a sole proprietorship the dismissal of the heir leads to complete closing down of the company.

Team Delfyle wishes you the very best of luck for your amazing journey ahead. In case of any further queries, feel free to get in touch with us at info@delfyle.com for a chat, absolutely free of cost!

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