One Person Company Vs Private Limited Company


Presentation Description

A detailed comparison of One Person Company and Private limited company.


Presentation Transcript



One person company one person company :

One person company one person company Only One Shareholder: Only a natural person, who is an Indian citizen and resident in India shall be eligible to incorporate a One Person Company. Director: Must have a minimum of One Director , the Sole Shareholder can himself be the Sole Director. The Company may have a maximum number of 15. 

Terms and Restrictions of OPC :

Terms and Restrictions of OPC A person shall not be eligible to incorporate more than a One Person Company or become nominee in more than one such company. Minor cannot shall become member or nominee of the One Person Company or can hold share with beneficial interest. An OPC cannot be incorporated or converted into a company under Section 8 of the Act. [Company not for Profit]. An OPC cannot carry out Non-Banking Financial Investment activities including investment in securities of any body corporate. 

Private limited company:

Private limited company Two or more persons to form a company is Private limited company. Limited Liability Continuity of existence More capital can be raised as the maximum number of shareholders allowed is 200.

OPC Vs private company:

OPC Vs private company Base OPC PRIVATE LIMITED NO OF MEMBERS MINIMUM ONE TWO BOARD OF DIRECTORS There must be atleast one director The board must comprise of minimum of two directors SHAREHOLDING The 100% shares of a One Person Company can be held by a single person A private limited company must have a minimum of two shareholders. Therefore, 100% of the shares of a private limited company cannot be held by a single person.

OPC Vs private company:

OPC Vs private company BASIS OPC PRIVATE COMPANY NRI OR FOREIGN NATIONALS Only Indian Citizens and Indian Nationals are allowed to start a One Person Company There are no such restrictions for a private company but incase of both the directors being NRI they must attend any one of the Board meetings held in India. POST INCORPORATION One Person Company has been recently introduced in India. Still some Governmental Departments and Banks have not updated their systems or forms and procedures to handle One Person Company. Therefore, there may be difficulties in obtaining certain licenses or registration after incorporation of a One Person Company. Private Limited Company has been around for decades and is the most popular type of corporate entity in India. Therefore, the process for obtaining other licenses and registration, post incorporation of a private limited company will be easy.


CONCLUSION One Person Company is very similar in nature on many fronts like cost of incorporation, number of person required to incorporate and compliance. However, when it comes to limitations, One Person Company has a lot more limitations on foreign promoter participation, mandatory conversion to private limited company, etc., Therefore, Entrepreneurs incorporate a Private limited company  instead of a ONE Person Company until the concept of One Person Company is well established in India. For more details visit

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