OPC vs LLP : Best for Small Business
Ebizfiling
1. Number of Owners
OPC : Only 1 person can be the sole owner.
LLP : Requires at least 2 partners.
2. Ownership & Control
OPC: Full control lies with the single owner.
LLP: Shared control and responsibilities between partners.
3. Legal Status
OPC: Has a separate legal identity; recognized like a private company.
LLP: Also a separate legal entity, but more flexible in operations.
4. Compliance Requirements
OPC: Higher compliance (annual returns, board meetings, audit.
LLP: Lower compliance, especially for small businesses.
5. Taxation
OPC: Taxed at 22% (plus surcharge and cess) like a company.
LLP: Taxed at 30%, but no Dividend Distribution Tax (DDT).
6. Funding Opportunities
OPC: Better for raising equity or converting to Pvt Ltd.
LLP: Less preferred by investors due to partnership model.
7. Conversion Flexibility
OPC: Can be converted into a Private Limited Company.
LLP: Can be converted into a company, but the process is more complex.
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