Ownership and Structure

• An LLP (Limited Liability Partnership) requires a minimum of two partners, with no maximum limit
  
• A One Person Company (OPC) can be formed by a single individual only
  
• LLP is a partnership-based structure, while OPC is a corporate entity
  
• In LLP, ownership and management can be shared among partners
  
• In OPC, the sole owner controls the business, though a nominee is mandatory
  

Governing Law

• LLPs are governed by the Limited Liability Partnership Act, 2008
  
• OPCs are governed by the Companies Act, 2013
  
• LLPs follow a more flexible, contract-based model
  
• OPCs are subject to stricter corporate regulations similar to private limited companies
  
• Different rules apply for compliance, meetings, and reporting
  

Liability and Legal Status

• Both LLP and OPC offer limited liability protection to their owners
  
• LLP is a separate legal entity from its partners
  
• OPC is also a separate legal entity, distinct from its sole shareholder
  
• In both cases, personal assets are protected from business liabilities
  
• Liability arises only in cases of fraud or wrongful acts
  

Compliance and Filing

• LLPs have lower compliance requirements, such as filing Form 8 and Form 11 annually
  
• OPCs must comply with annual returns, board meetings, financial statements, and ROC filings
  
• LLPs do not need to hold board or general meetings
  
• OPCs must follow company law procedures, even with only one person involved
  
• LLPs are more cost-effective in terms of compliance
  

Suitability and Purpose

• LLPs are suitable for professional firms, service providers, and joint ventures
  
• OPCs are ideal for solo entrepreneurs who want to operate with limited liability
  
• LLPs allow capital and responsibility sharing among multiple partners
  
• OPCs are restricted to a single promoter with no partnership provision
  
• LLPs are more suitable for long-term scaling or partnership-based businesses