Difference between Proprietorship and One Person Company (OPC)
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Difference between Proprietorship and OPC
There is a saying, If you want to be Strong, Fight Alone.
Plenty of people will have a fear of failure too, this fear may be a reason for not starting a business, but many of us break the fear and come up with new business ideas and start a business. If you are the single owner, for creating a business, there are two options, one is a Proprietorship and the other is One Person Company. In this article, we are going to see the advantages, procedures for formation, and the difference between both.
Proprietorship Firm
A sole proprietorship Firm is the most common and traditional business type in India and all over the world. The form of a proprietorship firm is very simple because there is no complex Government regulation to register a sole Proprietorship Firm as compared with other business entities like a Limited Company or OPC.
How to Register a Proprietorship Firm
Basically, a Proprietorship firm is not considered as a Separate Legal Entity. Furthermore, there are no specific statutes to Govern a Proprietorship firm. Hence there is no specific registration process, but to show proof of existence, you can register your firm under MSME/Udyam Registration.
Benefits of Proprietorship Firm
Easy to make decisions
Flexible to operate
Tax Benefits
Suitable for New entrepreneurs
One Person Company
One Person Company is the most recent child in the Incorporation Family, which was introduced by the Companies Act, 2013. This is the first time in India to enables one single member to get a company Incorporated through ROC.
Registration Procedure
The registering authority is ROC, Registrar of Companies
Step 1: Name Approval
Step 2: Obtain Director Identification Number
Step 3: Obtain Digital Signature
Step 4: Submit Documents
Step 5: Registration
What is the difference?
1. Liability: The primary difference is Liability. The Liability of the Proprietor is unlimited towards business transactions. But whereas the liability of a shareholder is limited to its share value.
2. Formation: As already said, there is no specific registration required for Proprietorship. Because the proprietorship firm is not governed by any of the statutory legislatures. But whereas the formation of OPC is governed by the Indian Companies Act and the registration carried out by Registrar of Companies (ROC)
3. Status: The One Person Company is a type of Private Limited Company and the name itself adds a good reputation to the Company and it creates credibility among the clients and vendors.
4. Continuous existence: On the demise of the Proprietor, the firm life comes to an end, because the business and the proprietors are both one and the same. The PAN of the proprietor is used for business also. But whereas the OPC Is a separate legal entity, hence it cannot be treated as dead until it is winded up through the due process.
Пікірлер: 81
Am a Science based graduate bro. I have no idea of how these business entities works not even our academic covered these kind of topics. Thank you for your kind service. It clears so many doubts and clarity on how to start business in a long run. ✌️
thank you for your valuable suggestions
Really superb explanation sir…..👏🏻👏🏻👏🏻👏🏻👏🏻👏🏻
Excellent explanations... Clear cut understanding..
மிகவும் பயனுள்ள பதிவு..வாழ்த்துக்கள்🙏🙏
Thanks you so much for this video brother.
Boss superb explanation thank you for the valuable information
Hello sir very good explanation.thankyou so much sir.
Mikka Nandri Bro 💖
Very good explanation
Very useful video..😊😊
Thanks a ton for this video. Great u made it.kindly update what is the limit of opc.and if opc converted on to Pvt .then wat is the procedure and time limit
Thankyou for your information. If I would like to appy for a business loan first time,how do will bank prefer either proprietorship or OPC.
Our video also very useful anna thankyou so much
Useful info for beginners
பயனுள்ள பதிவு👍
@LeIntelligensia
3 жыл бұрын
Lots of thanks Bro
Thank you bro
Ok. Good information. How to register ஓபசி கம்பெனி??? Pls up load video.
Can I have labours under OPC?? Thankyou for the video.
Useful
Dear Sir, This channel very useful for me in my life. Thank You soooooo much & Best wishes sir. I have one doubt.., Is it possible to convert Proprietorship to OPC...? If yes mean, What is the procedure sir.., (Put a video), if No mean, what will do after development of Proprietorship company..?
@arvindporus
2 жыл бұрын
same doubt
Tq sir ... Super explanation sir
@LeIntelligensia
8 ай бұрын
Thanks a lot for your support bro
Wow awesome explanation
@LeIntelligensia
2 жыл бұрын
Thanks a lot bro
appreciate bro great
Hi, Thank you.... I registered as an proprietorship company sir...Can I change to the one person company- OPC
Bro neraiya video podunga
Excellent info
@LeIntelligensia
7 ай бұрын
Thank you bro
Sir,creditors prefer lending to limited or unlimited liability companies?, unlimited liability is unfavourable for debtor and favourable for creditor, whereas limited liability is favourable for debtor and unfavourable for creditor??
sir ! grocery delivery app tamilnadu la pannanum na enna rules follow pannanum and procedure ennalam nu sollunga
How can I get the Repacking licence
Sir income tax filling for opc and pvt ltd sollunga
Properatorship ya one person company ya change panna mudiyum ma sir
How about OPC ITR form??
Sir na 1st time small la snacks shop open lamnu irukan... Ethu suitable la irrukum... For future...
Is there any advantage to register company as trader?? How to register company in the name of srs trader?
Super g
@LeIntelligensia
3 жыл бұрын
Thank you bro
Hi sir How to convert partnerships company to one person company
Bro Taxation??
The opc companies are started by promoters and have only one shareholder/member or by the one who started company is member?
@sowmiya6846
3 жыл бұрын
What you say .. not clear
Sir,Can we change from proprietory to private ltd after the business picks up in the timeline
@sowmiya6846
3 жыл бұрын
No timeline you can interested make apply for registration to roc for covert sole proprietor into opc
@arvindporus
2 жыл бұрын
@@sowmiya6846 what is the procedure?
Companies started by promoters and running with the hlp of co owners/shareholders?
@sowmiya6846
3 жыл бұрын
Start pannalam with co owners and share holders .... Some case promoters have a Share his company
🎉
Sir opc la company name mattum register panna mudiyadha ? Office run pannura mare irundhadhan company name register panna mudiyuma
@ajithavahini650
2 жыл бұрын
Swiggy/ Zomato/Food licence/ company registration /APEDA/ Trade Mark licence/logo/ Shop act / ISO certificate MSME/IEC,RCMC,Labour license/PWD licence/GST/ITR, loan/audit/overdraft facility,patent,Ne
Perum pechu pesurarae thavira visayathuku vara matikuraru.. Simple ah solla mudinja nalla irukum..
@LeIntelligensia
Жыл бұрын
Dear Brother, the content in this channel is specifically created for ordinary conman man and to make him understand the legal things. So it is compulsory to explain more clearly, so that a common man can understand it.
Hi Can proprietorship firm will be suitable to start export and import company?
@LeIntelligensia
3 жыл бұрын
At the begining level it's ok...
@sowmiya6846
3 жыл бұрын
Import and export only after get IEC code approval from govt
Promoters and member in opc is same?
@sowmiya6846
3 жыл бұрын
Who is Subscribe in moA is called a member .... So promoters Subscribe in moA automatically he is same
Sir proprietorship firm can change opc
@LeIntelligensia
3 жыл бұрын
Cannot ne changed directly. You can start am OPC then that opc can acquire your proprietorship business
சார்., என்னுடைய பிரோப்ரீட்டர் கம்பெனியை OPC ஆக மாற்ற முடியுமா.2016 -ல் ஆரம்பிக்கப்பட்டது..
@LeIntelligensia
3 жыл бұрын
Yes possible but in a indirect way. You can call me, will explain. 9941993399
Sir appo future la proprietorship la irunthu OPC ku company eh register pana chance iruka.???
@sowmiya6846
3 жыл бұрын
Yes
@vijaymanokar
3 жыл бұрын
@@sowmiya6846 thanks for your rly
@sowmiya6846
3 жыл бұрын
@@vijaymanokar 👍
@viekp76
Жыл бұрын
@@sowmiya6846 pls advice how it is?
sir can we merge 2 or more businesses into pvt ltd company?
@LeIntelligensia
2 жыл бұрын
Yes, but it should be of same business nature
@AJITHKUMAR-cj1nv
2 жыл бұрын
@@LeIntelligensia can it be a procurement ( seperate) and value added ( seperate) to be merged?
Sir can we convert properitorship into one company
@balakumarb1026
7 ай бұрын
Have you got an answer for this question???
OPC has the same risk as the Proprietary.. In terms of Risk, Liability whatever you explained is applicable for Pvt Ltd and not for OPC.
@LeIntelligensia
4 күн бұрын
Both Pvt Ltd and OPC has same benefits
@rathnamalasp1097
7 сағат бұрын
@@LeIntelligensia But You know the OPC has the Liability Risk unlike PvtLtd