Differences between One Person Company, Private Limited Company and Limited Liability Partnership

Here is the table that highlights the differences between a One Person Company (OPC), Private Limited Company (PVT LTD), and Limited Liability Partnership (LLP):
Basis One Person Company (OPC) Private Limited Company Limited Liability Partnership (LLP)
Number of Members 1 (One member only) Indian Resident 2 to 200 members Minimum 2 Partners and Max no limit
Liability Limited liability (members’ liability is limited to their shares) Limited liability (members’ liability is limited to their shares) Limited liability (partners’ liability is limited to their contribution)
Management Managed by the sole director, who must be an individual. Managed by board of directors (min. 2 directors required) Managed by designated partners (min. 2 designated partners required)
Legal Status Separate legal entity from the member Separate legal entity from the members Separate legal entity from the partners
Minimum Capital No minimum capital requirement No minimum capital requirement, but a nominal amount is required. No minimum capital requirement
Taxation Mandatory. Taxed as a company Mandatory. Taxed as a company Mandatory. Taxed as a partnership, but must file as a separate entity for tax purposes
Compliance Requirements Annual filing, but less compliance compared to PVT LTD Higher compliance, including audits, annual filings, etc. Less compliance than PVT LTD, but still requires annual filing with ROC (Registrar of Companies)

Transferability of Ownership Ownership cannot be transferred, as it’s owned by one person Ownership can be transferred through share transfers Ownership can be transferred by changing partners, but it requires agreement
Suitability Suitable for small businesses with one entrepreneur Suitable for small to medium businesses with multiple owners Suitable for professional services or businesses with limited liability and flexibility
Investment and Loan To comply Sec 186 To comply Sec 186 of Co act 2013 No such provision in LLP Act 2008
Maintenance of Books of Account Mandatory Mandatory Statement of Accounts and Solvency” in applicable form shall be filed by LLP with the registrar every year
Deposits from Public Provisions of Section 73 of the Companies Act, 2013 have to be strictly follow. Provisions of Section 73 of the Companies Act, 2013 have to be strictly follow. No such provision in LLP Act 2008
Loan to Directors/Partners Provisions of Section 185 of the Companies Act, 2013 have to be strictly followed Provisions of Section 185 of the Companies Act, 2013 have to be strictly followed No such provision in LLP Act 2008
Statutory Audit Mandatory Mandatory The books of accounts of LLP shall be audited only if turnover is more than 40 lakhs or partner’s contribution exceeds 25 lakhs

Each structure has its own unique advantages and limitations depending on the business needs. If you need further clarification on any of these, feel free to ask!
We hope this article was helpful enough for you to understand the differences between opc, pvt ltd company and LLP for doing your business.
Do you have more queries? Get in touch with us, Mukunda Shiva and Associates, a Chartered Accountant firm in Bangalore, we are equipped with the skills to handle such assignments including all other requisite registration.