A solo proprietorship is run and owned by one individual. Small investors like sole proprietorships because they are extremely simple to establish. Additionally, the proprietor is entitled to all profits made by the sole proprietorship, but he or she is also directly liable for any losses, obligations, or legal infractions arising from the operation. For instance, since the owner is viewed as one and the same, the business cannot continue if the owner passes away or becomes disabled because any debts owed by the company will be paid from the owner’s personal money.

Starting a one-person company eliminates all of the aforementioned issues and provides additional benefits for small business owners, traders, and entrepreneurs because it is less expensive to register and maintain the firm. When a one-person company is incorporated, it becomes a distinct legal entity with perpetual succession and limited liability. As the name implies, a One Individual Company (OPC) can be registered with just one person serving as both the director and shareholder. In comparison to a sole proprietorship, a one-person firm offers additional benefits such limited liability, corporate identity, quick decision-making, management flexibility, simple banking, and lower tax obligations.