Single founder businesses have two main options — the simple Sole Proprietorship or the more formal OPC structure. Each has distinct advantages depending on your business size and goals.
| Factor | OPC (One Person Company) | Sole Proprietorship | Winner |
|---|---|---|---|
| Liability | Limited — personal assets safe | Unlimited — personal assets at risk | OPC |
| Legal Identity | Separate legal entity | Owner = Business | OPC |
| Bank Loans | Easier — company can borrow | Harder for large amounts | OPC |
| Government Tenders | ✅ Company tender eligible | Limited | OPC |
| Tax Rate | 22% + cess (company rate) | Slab rate (up to 30%) | Depends on income |
| Compliance | Annual ROC filing, audit | Very minimal | Proprietorship |
| PAN | Company PAN (separate) | Individual PAN used | OPC (better separation) |
| Cost to Set Up | ₹6,000-10,000 | ₹999-2,000 | Proprietorship |
| Annual Cost | ₹5,000-10,000/year | Minimal | Proprietorship |
| Nominee Requirement | ✅ Mandatory nominee director | None | Proprietorship (simpler) |
| Brand Perception | "Private Limited" adds trust | Smaller perception | OPC |
| Best For | ₹20L+ turnover, growth plans | Very small local businesses | Depends |
OPC choose karo agar: turnover ₹20L+ hai, government tenders chahiye, bank loans needed, ya personal liability protection important hai. Proprietorship tabhi raho agar: very small local business hai, compliance cost avoid karna hai, aur very low turnover hai.