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December 21, 2022
One Person Company and Private Limited Company
OPC and Private Limited Company are two different business structures governed by the Companies Act. The concept of One Person Company encourages single and enthusiastic entrepreneurs to operate own venture. However, Private Limited Company requires two persons to incorporate the company.
Do you want to start a new business but have confusion as to what structure of company you should choose? This article might help you to ease your decision.
Table of Content
What is the meaning of OPC and Pvt Ltd Co.?
One Person Company means a Company which has only one person as its member. An OPC is effectively a company that has only one shareholder as its member.
A Private Limited Company is the form of the company where minimum two members are required and maximum number of members can be 200. The liability of the members of a Private Limited Company is limited to the amount of shares held by them.
Comparison between OPC and Private Limited Company
There are few similarities as well as a few differences between the OPC and Pvt. Ltd. Co. Let us discuss both here for your better understanding.
Similarities Between OPC and Pvt. Ltd. Co.
- Separate Legal Entity: Both of them have separate legal entity. That means OPC or Private Ltd Co. is treated as a different individual in the eyes of law.
- Benefits on taxes: To the both types of business structures tax benefits are given. The tax benefits would be 25% from the profits.
- Limited Liability: In case of OPC the Sole owner and in case of Pvt. Ltd. Co. the shareholders have limited liability to the extent of their shares.
- Registration Process: Both the companies are required to be registered with the Ministry of Corporate Affairs.
OPC and Private Limited Company – Quick Comparison Table
Particulars | OPC | Pvt. Ltd. CO. |
Law Applicable | Companies Act 2013 | Companies Act 2013 |
Minimum share capital | No requirement for minimum share capital. If capital exceeds 50 lakhs, opc gets converted to Pvt. Ltd. | No requirement for minimum share capital |
Members required |
Minimum one Maximum one |
Minimum two Maximum up to 200 |
Directors required |
Minimum one Maximum 15 |
Minimum two Maximum 15 |
Board meeting | One meeting in each half of the year. The gap between the two meetings must be at least 90 days | One meeting in each quarter of the year. The maximum gap between the two meetings can be 120 days |
Statutory Audit | Compulsory | Compulsory |
Annual Filing | Financial Statements and Annual returns to be filed with registrar | Annual accounts and Annual returns to be filed with RoC |
Liability | Limited | Limited |
Transferability of shares | Can be made by altering MOA | Can be easily transferred |
Foreign Direct Investment | Not eligible for FDI | Eligible via automatic route |
Suitable to which type | Individuals whose capital requirements are 50 lakhs and turnover is less than 2 crs | Business, trade, manufacturers, large industrial establishments |
Company Name | Should end with (OPC) Pvt. Ltd./ (OPC) Ltd. | Should end with Pvt. Ltd. |
Have more questions about Private Limited Company
One Person Company and Private Limited Company have a lot of similarities yet they both are different in many of their characteristics. If you are one person who wants to start a business One Person Company is definitely for you as the concept of One Person Company (OPC) was introduced with an objective to encourage single and enthusiastic entrepreneurs to operate their own venture. While in case you are more than one persons who wish to start the business together then Private Limited Company is for you.
Private Limited Company
Register a Private Limited Company with ease at Ebizfiling.com.
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6 thoughts on “OPC V/S Pvt. Ltd. Co.”
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Pls get in touch with me
Thanks Sharmistha Das for writing to us. Team will get in touch with you shortly.
If it is OPC Pvt.Ltd who will be having right to mortgage or alinate the company properties.
Hi S.Venkatramreddy,
Thank you for your query.
Well in case of One Person Company the Director has the right to mortgage or alinate the Company Properties. The director can do so by passing a resolution.
Hope this helps. For further queries, you may get in touch with team Ebizfiling on +919643203209 / info@ebizfiling.com
How can more than 1 director appointed in OPC PVT LTD?
Hello Amit,
Thank you for your inquiry.
The team will get in touch with you soon, Meanwhile you can get in touch with Ebizfiling on +919643203209 / info@ebizfiling.com