Easy to Start : Sole proprietorship isn't governed by any law and doesn't need any necessary registration. Hence, it's the simplest approach of beginning a business entity.
Lower Cost : As there are minimum compliances, there may be no want to hire an auditor for assembly the legal compliance requirements.
Complete Management: As a sole proprietorship firm is in hand by one person, he has the whole control over the business decisions and there are not any interventions of any kind.
2. ID Proof of the proprietor- Voter’s ID / Passport / Driving License / Aadhaar card
3. Passport Size Photograph
4. Address Proof of the Premises:
• Rental agreement or Lease agreement if the premise is rented/leased
• Latest tax paid receipt / Sale deed if the premise is owned by any of the Directors
5. Latest Electricity bill / Telephone bill / Gas Connection bill
6. NOC from the owner of the premise
Step 2: Apply for a GST in the name of sole proprietorship firm
Step 3: Apply for a MSME card in the name of sole proprietorship firm
Step 4: Open for a Current Account card in the name of sole proprietorship firm
Both of the entities will continue their business activities with only one person as an owner or shareholder or director. Still, there are varied points of variations between them.
One Person Company
|Not a Separate Legal Entity||Separate Legal entity|
|Unlimited liability||Limited Liability|
|No perpetual succession||Perpetual succession|
|Registration not required||Registration required|
|Financing depends on the credit record of the owner||Financing depends on the credit record of the OPC|
|Repayment of Loan is the sole responsibility of the of the owner||Repayment of Loan is not the sole responsibility of the OPC|
|Income Tax rate is between 5% – 30% depending on the income tax slab the proprietor falls under||Income Tax is 30% of profits|