Sole Proprietorship Vs OPC

Following are the main points of comparison between a Sole Proprietorship and a One Person Company:-

Particulars Sole Proprietorship OPC
Nature An entity where it is run and owned by one individual and where there is no distinction between the owner and the business OPC allows a single person to run a company limited by shares
Liability The person/owner is alone liable for the claims which will be made against the business. The liability of the share holder will be limited to the unpaid subscription money in his name.
Taxation Tax calculated on the basis of slab rates of Individuals Flat Rate 30% plus surcharge, cess and MAT. The provisions of dividend distribution tax would also be applicable on the company.

DDT will be abolished from the FY 2020-21.

Nominee In sole proprietorship, this can only happen through an execution of WILL, which again may be subject to a challenge in the court of law. OPC appoints a nominee designated by the member. The nominee shall in the event of death of the member, become a member of the company and will be responsible for  running the company.
Audit A sole proprietorship would only need to get audited under the provisions of Section 44 AB of the Income Tax Act, 1961 once its turnover crosses the prescribed threshold limit. A One Person Company has to file the annual returns etc,. just like a normal company and would also need to get its accounts audited in the same manner