Difference between Proprietorship and One Person Company (OPC)
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- เผยแพร่เมื่อ 9 พ.ย. 2020
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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. - แนวปฏิบัติและการใช้ชีวิต
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. ✌️
மிகவும் பயனுள்ள பதிவு..வாழ்த்துக்கள்🙏🙏
Excellent explanations... Clear cut understanding..
Really superb explanation sir…..👏🏻👏🏻👏🏻👏🏻👏🏻👏🏻
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.
thank you for your valuable suggestions
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
Boss superb explanation thank you for the valuable information
Hello sir very good explanation.thankyou so much sir.
Thanks you so much for this video brother.
Can I have labours under OPC?? Thankyou for the video.
Very good explanation
பயனுள்ள பதிவு👍
Lots of thanks Bro
sir !
grocery delivery app tamilnadu la pannanum na enna rules follow pannanum and procedure ennalam nu sollunga
Ok. Good information. How to register ஓபசி கம்பெனி??? Pls up load video.
Hi, Thank you....
I registered as an proprietorship company sir...Can I change to the one person company- OPC
Our video also very useful anna thankyou so much
Very useful video..😊😊
Mikka Nandri Bro 💖
How can I get the Repacking licence
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??
Useful info for beginners
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..?
same doubt
How about OPC ITR form??
Properatorship ya one person company ya change panna mudiyum ma sir
Hi sir
How to convert partnerships company to one person company
Bro neraiya video podunga
Thank you bro
Sir na 1st time small la snacks shop open lamnu irukan... Ethu suitable la irrukum... For future...
Sir income tax filling for opc and pvt ltd sollunga
Is there any advantage to register company as trader?? How to register company in the name of srs trader?
Wow awesome explanation
Thanks a lot bro
Bro Taxation??
appreciate bro great
Useful
Tq sir ... Super explanation sir
Thanks a lot for your support bro
Excellent info
Thank you bro
Sir opc la company name mattum register panna mudiyadha ? Office run pannura mare irundhadhan company name register panna mudiyuma
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
The opc companies are started by promoters and have only one shareholder/member or by the one who started company is member?
What you say .. not clear
Companies started by promoters and running with the hlp of co owners/shareholders?
Start pannalam with co owners and share holders .... Some case promoters have a Share his company
Super g
Thank you bro
Sir,Can we change from proprietory to private ltd after the business picks up in the timeline
No timeline you can interested make apply for registration to roc for covert sole proprietor into opc
@@sowmiya6846 what is the procedure?
Promoters and member in opc is same?
Who is Subscribe in moA is called a member .... So promoters Subscribe in moA automatically he is same
Sir proprietorship firm can change opc
Cannot ne changed directly. You can start am OPC then that opc can acquire your proprietorship business
Hi Can proprietorship firm will be suitable to start export and import company?
At the begining level it's ok...
Import and export only after get IEC code approval from govt
சார்., என்னுடைய பிரோப்ரீட்டர் கம்பெனியை OPC ஆக மாற்ற முடியுமா.2016 -ல் ஆரம்பிக்கப்பட்டது..
Yes possible but in a indirect way. You can call me, will explain. 9941993399
Perum pechu pesurarae thavira visayathuku vara matikuraru.. Simple ah solla mudinja nalla irukum..
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.
Sir can we convert properitorship into one company
Have you got an answer for this question???
Sir appo future la proprietorship la irunthu OPC ku company eh register pana chance iruka.???
Yes
@@sowmiya6846 thanks for your rly
@@vijaymanokar 👍
@@sowmiya6846 pls advice how it is?
sir can we merge 2 or more businesses into pvt ltd company?
Yes, but it should be of same business nature
@@LeIntelligensia can it be a procurement ( seperate) and value added ( seperate) to be merged?