OPC and Private Limited Company are two various business structures governed by the Companies Act. The concept of One Person Company promotes single and passionate entrepreneurs to operate their venture. However, Private Limited Company needs two persons to incorporate the company. In this article, we will explain the difference Private Limited Company and OPC from the viewpoint of an Entrepreneur beginning a new business.
Understand about Pvt Ltd and LLP?
A Private Limited Company is a company which is confidentially held for small enterprises. The liability of the members of a Private Limited Company is confined to the number of shares respectively held by them. Shares of Pvt Ltd cannot be candidly traded.
One Person Company means a Company which has an exclusive one person as to its member. An OPC is efficiently a company that has only one shareholder as its member.
| Particulars | Private Limited Company | One Person Company |
| Law Appropriate
|
Companies Act 2013 | Companies Act 2013 |
| Minimum share capital | No requirement for minimum share capital | No requirement for minimum share capital. If capital exceeds 50 lakhs, OPC gets converted to Pvt. Ltd. |
| Members Required | Minimum two
Maximum up to 200 |
Minimum one
Maximum one |
| Directors required | Minimum two
Maximum 15 |
Minimum two
Maximum 15
|
Similarities Between OPC and Private Limited Company
- Separate Legal Entity: Both of them have a different legal entity. That means OPC or Private Ltd Co. is treated as various individual in the eyes of law.
- Benefits on taxes: To both varieties of business structures tax benefits are given. The tax gains would be 25% of the profits.
- Limited Liability: In the state of OPC the Sole owner and in state of Pvt. Ltd. Co. the shareholders have limited liability to the increase of their shares.
- Registration Process: Both companies are obliged to be registered with the Ministry of Corporate Affairs.
Also, require any other guidance with respect to Company Formation please feel free to contact our business advisors at 8881-069-069.
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