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One person company is a new and unique concept introduced by Companies Act 2013 to encourage small traders and business persons. OPC provides the benefits of a company form of business, even to a single person. Statistics show OPC is set to become one of the most preferred forms of business organizations by small traders. OPC is a boon for the entrepreneur and low-risk service providers. As per Companies Act 2013. Section 2(62) OPC is defined as a company which has a person as a member. Its a special type of company which allows the only one owner to start a business under Private limited structure without any other co-founder. To form an OPC, a person who is a citizen of India and he/she has stayed in India for 182 days during the immediately previous financial year. However, one person cant form more than one OPC or become the nominee of more than one for such a company. Foreign nationals cannot register an OPC in India.

A sole proprietorship is a type of unregistered business unit that is owned, managed, and controlled by one person who retains the full authority & responsibility concerning the business. Sole proprietorships are one of the most common forms of business in India. It is easy and cost effective as well. The legal responsibility for the obligations of the business lies with the proprietor. Thus, the proprietorship is not a distinct entity unto itself, rather business and its owner are clubbed together. In this type of Business, the person operating will only be the director and shareholder himself.

The limited liability partnership (llp) is a registered company under the llp act, 2008. As compared to unregistered partnership firms, registration offers many advantages. Llp act 2008 is the parent statute for llps. Llp is useful when two parties decide to start a business on a profit-sharing basis. Llps allow individual partners to be restricted from joint liability of partners in a partnership firm and are quite popular as a form of business entity in the west. As far as compliance is concerned, llp requirements are similar to private limited companies. Llps have a separate legal entity. The llp can sign contracts and sue parties in its name. It means that partners are not personally liable for the debts if the company. As compared to unregistered partnership firms, some additional compliances are required, but the legal formalities are less as compared to a private limited company, the legal requirements are less, and the llp form of business is easier to incorporate than a company.companies registered as an llp need to add llp as a suffix to the company name.

Companies registered under section 8 of the Companies Act 2013 are called Section 8 companies. Their principal objective is to promote of arts, commerce, charity, education, protection of the environment, science, social welfare, sports, research, religion and intends to apply its profits, if any, or other income in promoting its objects. It functions like a Trust or society established for NGO activity, except section 8 companies are registered with MCA under the central government. The earnings of the Company must be used to promote only charitable objects and cannot pay any dividend to the members of the company. The central government provides an incorporation certificate to all such companies and also informs them about some restrictions and conditions.