Which company type One Person or Proprietorship? - MNC Filings

Which company type One Person or Proprietorship?

One Person Company means Person and business are different entity , Priportership is Type of enterprise which is owned and run by one person and also in which there is no legal separation between the owner and the business entity.

Only a natural person, who is an Indian citizen and resident in India shall be eligible to incorporate a One person company.

Explanation: The term “Resident in India” means a person who has stayed in India for a period of not less than 182 days during the immediately preceding one calendar year.


Must have a minimum of One Director, the Sole Shareholder can himself be the Sole Director. The Company may have a maximum number of 15 directors.

Minimum Paid-up Capital

For OnePerson company minimum paid up capital  -1 lakh rupees,In Proprietorship there is no minimum paid up capital required.

Name Selection -One Person company require to use same name across all medium , while in Proprietorship.  A sole proprietor may use a trade name or business name other than their or its legal name.

Limited liability

An One person company provides limited liability to entrepreneurs whereby the liability of the member.,there is unlimited liability

One person company are a separate legal entity.Priportership have no separate entity

Succession-It also has the feature of perpetual succession,Making it easier for entrepreneurs to transfer ownership and raise capital.

Compliance & Legal

An OPC has much lesser compliance burden making it an ideal business structure for small businesses.There is lack of legal formalities in Proprietorship

Profit-In proprietorship firm the proprietor receives all profits and has unlimited responsibility for all expenses and losses.Complete control of proprietor & Maximum incentives

For One Person Company it decided upon how much share you have in company.

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