DIFFERENCE BETWEEN PRIVATE LIMITED COMPANY V/S ONE-PERSON COMPANY (OPC) V/S LIMITED LIABILITY PARTNERSHIP (LLP)
What kind of business you should Start off with?????
There are several platforms which are available, to Choose one’s plan of owning a business and deriving maximum benefits out of it. However, one need to make a proper analysis of the risks and returns of which they are anticipating of such occurrence before venturing into a new project or certainly the outcome from it.
Here’s the quick analysis of the 3 different forms of organization.
There are various criteria which distinguishes Private ltd company, OPC & LLP.
|Aspects||Private Ltd Company||One-person Company(OPC)||Limited Liability partnership(LLP)|
|Governed by||Companies Act 2013||Companies Act 2013||Limited Liability partnership Act 2008|
|Minimum No of Members||Min.2 members (Can be body corporate also)||1 member who is resident of India, and 1 nominee should be present.||LLP should have a minimum of 2 members. There is no limit on maximum number of members.|
|Minimum No of Directors||Min.2 Directors out of which 1 Director has to be present in India.||1 Director who has to be a resident of India.||2 Designated partners out of which 1 director has to be present in India.|
|Name shall include||Name of the Private Company to end with “Private Limited”.||“One-person Company” shall be mentioned in brackets below the name of such company.||Name to end with LLP (Limited Liability partnership)|
|Minimum Capital||No minimum requirement||No minimum requirement||No minimum requirement|
|Taxation||Taxed at 30% + Surcharge + Cess.||Taxed at 30% + Surcharge + Cess.||Taxed at 30% + Surcharge + Cess.|
|Annual filings||Annual accounts and annual returns to be filed with ROC.||Financial Statements and Annual return to be filed with ROC.||Annual statement of Accounts and Solvency & Annual Return has to be filed with ROC.|
|Statutory Audit||Compulsory||Compulsory||If Contribution is >than 25 lakhs, or turnover is
|Minimum Number of Meeting (Including Board & AGM)||
|Suitability||More suitable for businesses, trade, manufactures, large industrial establishments etc.||Suitable for Individuals whose Capital requirements are less than 50 lakhs or Turnover is less than 2 Cr.||More suitable for professionals like CA, CS, Advocates etc.|
|Conversion||Can be converted into LLP.||Can be converted only after the expiry of 2 years from the date of incorporation.||Can be converted into Company/Firm.|
|Time taken for Registration||5-7 days||7-10 days||10-15 days|
|Procedure for Incorporation||
|Liability||Limited Liability||Limited Liability||Limited Liability|
- One-person Company is a new concept that has been introduced in India. Still there are lot of Changes having to be undergone and lot more review for the improvement of OPC Company is required.
- In an LLP, one partner is not responsible or liable for another partner’s misconduct or negligence. This is an important difference from the traditional unlimited partnership under the partnership Act, in which each partner has joint and several
- Private Limited Company the business owners hold all shares of the company privately. Shareholders may operate the business themselves, or hire directors to manage the Company on their
- Forming a private limited Company results in protection of personal assets, access to more resources, financial assistance and greater