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.
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.
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.
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.
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