Suppose you are going to start a business. In that case, you have to be careful that you have chosen the correct form of activity. It is essential to select the correct type of business organization because of their differences. It has to follow different compliances, so you have to choose wisely. This article discusses the Limited Liability Partnership and One Person Company and their registration and differences.

Limited Liability Partnership

A Limited Liability Partnership (LLP) is an organization that can be incorporated by two or more people. It is like a partnership firm, but there are differences between them. There is a limited liability on Partners, and it is a separate legal entity that can sue or be sued. LLP is regulated by the Limited Liability Partnership Act and legal compliances made under the Registrar of Company. To register your business as an LLP, you must obtain a Digital Signature Certificate for the proposed director. You must reserve your LLP name through LLP-RUN and then file an incorporation application. The Procedure of Incorporation has been changed in the recent amendment, so now you must file a Fillip Form for inclusion. After establishment, you have to submit your LLP agreement to the ROC. As you can see above, the registration process for LLP is easy and straightforward. You can file these forms online on the Ministry of Corporate Affairs website.

One Person Company

A personal company (OPC) is an organization that can be incorporated by only one person; this concept was introduced by the Companies Act 2013. It is a separate legal entity that can sue and be sued and is a separate legal entity from its promoter. Suppose you want to incorporate your own one-person company. In that case, you must register it under the Ministry of Corporate Affairs and comply with the companies' registrar. You may have to face legal consequences if you fail yearly agreements. During Incorporation, you must nominate a nominee director in the Memorandum of Association and Article of Association so he will become the company's owner if the sole director becomes disabled. Suppose you want to register your personal company Registration. In that case, you must follow the MCA procedure, which says that first, you must create a Digital signature certificate and the Directors' identification number of the proposed director. You have to reserve your company name. You have to file your MoA and AoA. Then, you can submit your incorporation form online on the Ministry of Corporate Affairs' official website.

What are the differences?

Many differences exist between a personal company and a Limited Liability Partnership; some crucial discrepancies are mentioned below.
  • LLP is governed by the LLP laws, whereas One Person Company is managed by the Companies Act 2013, but both have to comply with the Registrar of Companies.
  • A significant difference is that OPC can be incorporated by only one person, whereas there are two or more partners for the Incorporation of an LLP.
  • In A one-person company, only one person is required during the Incorporation of an organization. In contrast, in an LLP, two or more persons are needed to integrate an LLP firm. 
  •  a Memorandum of Association and Article of Association for One Person or Company is required during Incorporation, whereas an LLP agreement is needed for inclusion. 
  • In One Person Company, the owner has to nominate a nominee, whereas in LLP, there is no requirement. 
  • Foreigners are now allowed to invest in personal companies, whereas, in LLP, they become a partner after approval from the government. 
  • In both organizations, there is no requirement for annual meetings. 
  • Rising capital is accessible in LLP, whereas there will be difficulty for the owner of the one-person company.
In OPC, they have to maintain a book of accounts com, ply with the statutory audit requirements, submit income tax returns, and file annual filing with the registrar of companies, whereas, in the case of LLP, they have to comply with a statutory audit in the case where turnover exceeds Rs. 40 Lakh or capital contribution exceeds Rs.25 lakh. So, LLP needs to comply more.


As you can see, LLP is right over the OPC because fewer compliances are required for LLP, and it is easy for LLP to raise capital for business. Decision-making will be correct in LLP because partner will share their experience. To register your business as OPC or LLP, you can file your incorporation application online on the Ministry of Corporate Affairs' official website. The registration process is simple and straightforward, as you can see above, and you have to consider the above-given points to help you choose the correct form of organization for your business.