Article by Smrithi Shibichakravarthy. As an entrepreneur, managing your business single-handedly means that your business could be considered either as a sole proprietorship or as a one-person company (OPC). Though both of these terms sound alike and have major similarities there are also a few very important differences which you need to be aware of in order to take your business down the path you’re looking for. There are differences concerning entities, liabilities, taxation, and succession. Based on the type of business you’re running, and the business you one day want it to be, it’s important to understand these differences before declaring it as a sole proprietorship or OPC. Through this article, you’ll be able to choose which one you want to go for in order to ultimately achieve your business goals. What is a Sole Proprietorship? To start with the basics, we need to understand the term ‘sole proprietorship’: The Government of India defines a sole proprietorship as a “on
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