One person company vs Private limited company
‘One Person Company’ (OPC) has been recently introduced in India, under the act 2013. The business entities like Limited Liability Partnership, Public limited company and Private limited company needs two or more people in a partner. But a OPC will allow a single owner to manage all the business.The OPC will give all the benefits of a Private Limited Company. In this article, we compare the difference between One person company vs Private limited company.
One person company vs Private limited company
A one person company means, a company which allow only one person to manage all their business. An OPC have only one director and the maximum of 15 directors. The small entrepreneurs like artisans, weaver, traders and small to mid level entrepreneurs. One person company is the bright future for them.
Cost of Registration
Compare to the cost of private limited company registration. One person company registration is much lower. The both private limited company registration and one person company registration through Solubilis at an affordable cost. It has all-inclusive cost of registration.
Number of persons
Only two persons are required to incorporate a Private Limited Company . To incorporate a One person company two directors are required. The one is director of the company and other is nominee director.
Board of directors
In a One person company, the board of directors as the entity can be handled by a single person. The concept of board meetings and annual general meetings is not suitable for one person company.The board of directors in a private limited company, including a minimum of two directors and maximum of 15 directors.
Shares
A private limited company must have two shareholders. So, The private limited company cannot owned all their shares in a single person. But, a one person companies 100% of shares can be owned by a single person.
Foreign Nationals or NRI
The private limited company can be started and handled by foreign nationals and NRIs. But a one person company can allowed, only an Indian citizens are eligible to start a one person company.
Needs of Compliance
The compliance requirements of private limited company and one person company are quite similar. Both company must be required to register their Income tax returns with the income tax department. The annual returns are register their Ministry of Corporate Affairs (MOA).
Company Registration
One person company has been recently established in India. Some banks and government departments are not updated their facilities. So there may be some difficulties to get license and registration after incorporation a one person company. Private Limited company is the most popular type of business entity in Chennai. The private limited company registration process are easily done in all Registrar of Companies (ROC). The registration and license are also obtaining easily.
Bottom-Line
One person company vs private limited company have quite similar. The one person company (OPC) is also converted into a private limited company. But, there are certain limitations in that conversions. Therefore, Solubilis register the both company registration in Chennai and all over India.
