Difference between LLP, Private Company and OPC
The very first step in starting a business is to select the right business structure. This selection is based on various criteria including business plan, number of partners, conditions for investment, international investment, area of activity, risk-taking ability etc. While there are many businesses structure people many a times get confused about the type of structure they should opt.
Are you looking to start a new business but have concern about which business structure to choose from? This article can help ease your decision.
Private limited, OPC and Limited Liability Partnership are separate corporate entities regulated by different statutes, namely the Companies Act and the Limited Liability Partnership Act. The One Person Company idea allows single and enthusiastic businessmen to run their own company. Limited Liability Company also requires two persons to be incorporated. Whereas Private Limited legal form is most commonly used to incorporate a company. This is preferred, since this arrangement leaves members’ liability limited to their share of the shares.
Meaning of LLP, Private Company and OPC
A Limited Liability Partnership is the type of the company where minimum two members are required and the maximum number of members is not limited. The members of an LLP have no liability.
A Private Limited Company is a limited group of people owned Business Company. It is registered for pre-defined objects and held by a group of shareholders called. Startups and companies with a higher growth goal popularly select Private Company as the correct business structure.
One Person Company means a Company that only has one employee. An OPC is also a corporation with only one shareholder as a member of it.
Here is the OPC, Private Limited Company and Limited Liability Partnership (LLP) distinction on criteria such as Business Preparation, Business Structure Advantages, Business Management, Taxes, Accounting, Audit, Documents and Legal Compliances.
Comparison table :
Other than the comparison there are also few similarities that come between OPC, LLP and Private limited company:
· Startup India: LLP, Private limited and OPC can be registered for startup India.
· Maintenance of basic statutory records is mandatory for all three.
· Separate legal entity: LLP, OPC and Private limited all three are separate legal entities.
Conclusion
The option is very easy if you are looking for private limited (Pvt Ltd) structure to get your business financed-go. Investors and venture capitalists, on the whole, tend to finance private limited companies. The other two forms of corporation-Limited Liability Partnership ( LLP) and One Person Company (OPC)-operate better for those trying to run their business without external capital and want full control of all the business operations. Finleg helps you in incorporation of a Company, OCP or LLP in a simple and hassle-free way with the aid of our groundbreaking technology. We provide you a platform combined with automated process flow allow you to integrate your company faster. Finleg help you to understand and guide you better while assisting with incorporation at the best possible rates.
