When beginning a company, you must decide what form of Company you want to register. Companies are of various types which includes One Person Company, Private Limited Company, Public Limited Company, Limited Liability Partnership etc.
OPC and Private Limited Company are two various business structures governed by the Companies Act. One Person Company is a blend of Sole-Proprietorship and Company form of business. It allows a sole person to own and also manage the entire business operations. One Person Company is a Company which has a separate existence, but is owned by a single 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.
Difference between One Person Company and Private Limited Company:
| Particulars | Private Limited Company | One Person Company |
| 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 2 Maximum 200 | Minimum 1 Maximum 1 |
| Directors required | Minimum 2 Maximum 15 | Minimum 1 Maximum 15 |
| Name of entity | Name of company has to end with suffix Private Limited | Company name has to have a suffix (OPC) |
| Annual Filings | Annual accounts and annual return are required to be filed with the ROC | Financial statements and annual return required to be filed with the registrar |
| Transferability of shares | Shares can be transferred easily | Shares can be transferred only by altering the Memorandum of Association |
| Board Meeting | One board meeting must be held in each quarter of the calendar year and the maximum gap between two meetings can be 120 days. | One board meeting must be held in each half of the calendar year and the gap between the meetings must be at least 90 days. |
Similarities between One Person Company and Private Limited Company:
| Particulars | Private Limited Company | One Person Company |
| Governing Law | Governed by the Companies Act, 2013 | Governed by the Companies Act, 2013 |
| Registration Process | Registered with the Ministry of Corporate Affairs. | Registered with the Ministry of Corporate Affairs. |
| Statutory audit | Compulsory | Compulsory |
| Liability | Limited | Limited |
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Note: This Post was last updated on May 10, 2023
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