LLPs benefit over One Person Company No bar on the number of owners in the business Less compliance burden as compared to other entities No requirement for compulsory audit Save the burden of Dividend Distribution Tax Double advantage of both a company and a partnership The internal structure of an LLP easier to manage Company’s benefit over LLP One's great potential allowing to create a company individually Minimal maintenance is required Easy to set up Separate entity ensure the protection of limited liability Full control over the business by one person Procedure for the conversion Obtain DPIN (Designated Partner Identification Number) in Form DIR-3 Call a board meeting of the directors and pass a resolution for such conversion File form LLP-1 for the name of the company which will be changed into the name of the LLP Draft LLP agreement File incorporation documents in form LLP-2 File form-18 for application of conversion File form-3 which contains the details of the LLP agreement Obtain the certificate of incorporation File form-14 within 15 days from the date of receiving the incorporation certificate.

On the contrary, in case of tort liability the feature of limited liability is not applicable.

PAN/TAN Application Application for PAN card must be applied in form 49A online on the NSDL Portal.

The strike off application should be filed within 30 days from the date of signing the statement of Assets and Liabilities.

Taxation The income of the One Person Company is taxed at the flat rate of 30% plus education cess in addition to surcharge when applicable.

Auditor The provision of mandatory rotation of auditor after the expiry of term is not applicable on OPC.

Taxability As the concept of OPC is not recognised under Income Tax Act, income of both the entities are taxed with the same rate of 30% plus education cess in addition to surcharge if applicable.

Tax liability: Income tax rates applicable to private limited companies apply on One Person Company too.

Cess is also applicable, 2% education cess and 1% secondary higher education cess i.e. 3% effective rate of cess.

Declaring the company Defunct Any company that wants to strike off its name from the registrar of the company can declare itself defunct by applying Form FTE  and then the company can be shut down by the registrar of the company.