The solo founder's dilemma
If you are starting a business on your own, two structures usually come up: a sole proprietorship and a One Person Company (OPC). Both let a single person run the business, but they are very different in how they protect you and how seriously others take them.
Sole proprietorship: simplest to start
A sole proprietorship is the easiest and cheapest way to start. There is no separate registration to create the entity itself — you simply operate under your own name or a trade name, with registrations like GST or a trade licence as needed.
The catch is that there is no separation between you and the business. Your personal assets are exposed to business liabilities, and raising funds or building strong credibility can be harder.
OPC: limited liability for one person
A One Person Company gives a single founder the benefits of a company — limited liability and a separate legal identity — without needing a second shareholder. Your personal assets are protected from business debts, and the structure looks more credible to banks and partners.
The trade-off is more compliance than a proprietorship, including annual filings.
A quick comparison
- Liability: proprietorship exposes personal assets; OPC offers limited liability
- Credibility: OPC is generally seen as more credible
- Compliance: proprietorship is lightest; OPC has annual filings
- Cost: proprietorship is cheapest; OPC costs a little more to run
- Conversion: an OPC can convert to a Private Limited Company as you grow
How to choose
If you are testing an idea or running a very small, low-risk business, a proprietorship may be enough. If you want personal asset protection, plan to grow, or will deal with larger clients and banks, an OPC is usually the better long-term choice.
How Aidwish helps
Aidwish assesses your goals and risk, recommends the right structure, and handles the full registration and ongoing compliance — so you start protected and credible from day one.