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7/24/2020 Difference Between One Person Company and Private Limited Company | by India Tax | Jul 2020 | Medium https://medium.com/itaxinfo6/difference-between-one-person-company-and-private-limited-company-33239c091fde 1/3 Dierence Between One Person Company and Private Limited Company India Tax Jul 22 · 2 min read One Person Company and Private Limited Company are two different business structures governed by the Companies Act. The concept of One Person Company encourages single and enthusiastic entrepreneurs to operate their own venture. However Private Limited Company requires two persons to incorporate the company. Do you want to start a new business but have confusion as to what structure of company you should choose This article might help you to ease your decision.

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7/24/2020 Difference Between One Person Company and Private Limited Company | by India Tax | Jul 2020 | Medium https://medium.com/itaxinfo6/difference-between-one-person-company-and-private-limited-company-33239c091fde 2/3 What is the meaning of OPC and Pvt Ltd Co. One Person Company means a Company which has only one person as its member. An OPC is effectively a company that has only one shareholder as its 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. Comparison between OPC and Private Limited Company There are few similarities as well as a few differences between the OPC and Pvt. Ltd. Co. Let us discuss both here for your better understanding. Similarities Between OPC and Pvt. Ltd. Company:

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7/24/2020 Difference Between One Person Company and Private Limited Company | by India Tax | Jul 2020 | Medium https://medium.com/itaxinfo6/difference-between-one-person-company-and-private-limited-company-33239c091fde 3/3 Separate legal entities: Both of them have separate legal entities. That means OPC or Private Ltd Co. is treated as a different individual in the eyes of law. Benefits on taxes: To both types of business structures tax benefits are given. The tax benefits would be 25 from the profits. Limited Liability: In case of OPC the Sole owner and in case of Pvt. Ltd. Co. the shareholders have limited liability to the extent of their shares. Registration Process: Both the companies are required to be registered with the Ministry of Corporate Affairs. One Person Company Private Limited Company Income Tax Return Gst About Help Legal Get the Medium app