Sole Proprietorship vs One Person Company

Sole Proprietorship vs OPC

The sole proprietorship is defined as a company that is owned and managed by one person. In this, the owner is directly liable for all the profits or losses. This form of business does not require any legal formalities; hence it is considered a highly convenient form of business for small investors.

This is because it is easy and convenient. But there are certain drawbacks of this project as well, like in case of a loss or pending debts, they would be satisfied with the personal assets of the owner and in the situation of demise or incapacitation of the owner, the business does to continue. This situation arises as the business and owner are considered as one entity, making way for unlimited liabilities.

Hence, to overcome the issues with the sole proprietorship, and reward the small traders, businessmen and entrepreneurs with greater benefits, the new way is to convert sole proprietorship vs one person company (OPC). The easy registration process and minimal fees make it easier to convert Sole Proprietorship to One Person Company. Also, it is regarded as a separate entity with succession and limited liabilities. Some of the highlighted advantages of OPC are:

• Limited Liability
• Legal Status 
• Corporate Identity
• Quick Decision Making 
• Flexible in Management 
• Easy bank operation 
• Reduced taxation burdens.

OPC is a better and more secure way of doing small businesses. Those who want to know How to Convert Sole Proprietorship to One Person Company, they can browse through the following steps:

• Obtain a Director indication number for the company.
• Acquire the Digital Signature of Certificate for the company.
• Create a name for your business and apply for approval.
• Draft Memorandum of Association and Articles of Association.
• Fill out various documents including MOA and AOA in respect of e-forms with the respective companies.
• After the forms are submitted a Certificate of Incorporation from the Registrar of Companies is issued for the company.

Sole Proprietorship to One Person Company

Email: Contact@Company-Registration.in

Call/Whatsapp: 8800100284

W/www(dot)company-registration(dot)in