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sole trader and one man company

shrishail hatti (5 Points)

18 December 2017

what is the difference between sole trader and one person company why those names came into existance

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3 Replies

amar delo (article assistant) (115 Points)
Replied 18 December 2017

main difference is sole trader has unlimited liability and one person company has limited liability

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shrishail hatti (5 Points)
Replied 18 December 2017

both the orgn are their or sole trader is replaced by one person company

Pardeep Garg (CA-Final Student) (801 Points)
Replied 18 December 2017

Both are there.
Don't worry.
Govt. has introduced a new concept of OPC since co.act2013, as per which an individual who is citizen & resident of India can become the member of OPC.
the main difference btw.sole trader & OPC are as:--
⏺️OPC (one person co.) have separate legal entity;
🔽while in case of sole trader it is not.

⏺️ liability of the member of OPC is limited;
🔽 while liability of sole trader is unlimited.

⏺️OPC is governed by Co.Act 2013;
🔽while no act for sole trader.