Here is the table that highlights the differences between a One Person Company (OPC), Private Limited Company (PVT LTD), and Limited Liability Partnership (LLP):
\nBasis\tOne Person Company (OPC)\tPrivate Limited Company \tLimited Liability Partnership (LLP)
\nNumber of Members\t1 (One member only) Indian Resident\t2 to 200 members\tMinimum 2 Partners and Max no limit
\nLiability\tLimited liability (members’ liability is limited to their shares)\tLimited liability (members’ liability is limited to their shares)\tLimited liability (partners’ liability is limited to their contribution)
\nManagement\tManaged by the sole director, who must be an individual.\tManaged by board of directors (min. 2 directors required)\tManaged by designated partners (min. 2 designated partners required)
\nLegal Status\tSeparate legal entity from the member\tSeparate legal entity from the members\tSeparate legal entity from the partners
\nMinimum Capital\tNo minimum capital requirement\tNo minimum capital requirement, but a nominal amount is required.\tNo minimum capital requirement
\nTaxation\tMandatory. Taxed as a company\tMandatory. Taxed as a company \tMandatory. Taxed as a partnership, but must file as a separate entity for tax purposes
\nCompliance Requirements\tAnnual filing, but less compliance compared to PVT LTD\tHigher compliance, including audits, annual filings, etc.\tLess compliance than PVT LTD, but still requires annual filing with ROC (Registrar of Companies)<\/p>\n
Transferability of Ownership\tOwnership cannot be transferred, as it’s owned by one person\tOwnership can be transferred through share transfers\tOwnership can be transferred by changing partners, but it requires agreement
\nSuitability\tSuitable for small businesses with one entrepreneur\tSuitable for small to medium businesses with multiple owners\tSuitable for professional services or businesses with limited liability and flexibility
\nInvestment and Loan\tTo comply Sec 186\tTo comply Sec 186 of Co act 2013\tNo such provision in LLP Act 2008
\nMaintenance of Books of Account\tMandatory\tMandatory\tStatement of Accounts and Solvency\u201d in applicable form shall be filed by LLP with the registrar every year
\nDeposits from Public\tProvisions of Section 73 of the Companies Act, 2013 have to be strictly follow.\tProvisions of Section 73 of the Companies Act, 2013 have to be strictly follow.\tNo such provision in LLP Act 2008
\nLoan to Directors\/Partners\tProvisions of Section 185 of the Companies Act, 2013 have to be strictly followed\tProvisions of Section 185 of the Companies Act, 2013 have to be strictly followed\tNo such provision in LLP Act 2008
\nStatutory Audit\tMandatory\tMandatory\tThe books of accounts of LLP shall be audited only if turnover is more than 40 lakhs or partner\u2019s contribution exceeds 25 lakhs<\/p>\n
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!
\nWe hope this article was helpful enough for you to understand the differences between opc, pvt ltd company and LLP for doing your business.
\nDo 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.<\/p>\n","protected":false},"excerpt":{"rendered":"
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 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6730","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\n