One Person Company(OPC ), Limited Liability Partnership (LLP) and Private Limited Company(PLC) are three different business structures. Although they have some similarities, like One Person Company and Private Limited Company are governed by Companies Act 2013.
It is difficult to choose the type of entity while initiating a business, so this article will provide you with the difference between business structure. This Infographic guide has everything you need to know about Difference between OPC, LLP and Pvt Ltd company.
| Particulars | Private Limited Company (PLC) | One Person Company (OPC) | Limited Liability Partnership (LLP) |
| Constitution | Private Limited Company is a separate legal entity registered under the Companies Act, 2013 | One Person Company is a separate legal entity registered under the Companies Act, 2013. | Limited Liability Partnership is a separate legal entity registered under the LLP Act, 2008. |
| Mainly Useful for | Businesses having high turnover, entrepreneurs who need external sources of funding. | Services oriented businesses that have low investment needs. | Proprietors looking to limit their liability & have 100% control. |
| Minimum Number of Members | 2 Members | 1 Member | 2 Members |
| Compliance | In case of Private Limited Company compliance is high as compared to OPC and LLP. | In case of One Person Company compliance is Moderate as compared to PLC and LLP. | In case of Limited Liability Partnership compliance is low as compared to OPC and PLC. |
| Transferability | Ownership can be transferred by way of share transfer | Ownership can be transferred. | Ownership can be transferred. |
| Capital Raising | The capital raising is very easy in case of Private Limited Company | The Capital Raising is difficult in case of One Person Company. | The Capital Raising is moderately easy as well in case of Limited Liability Partnership. |
| Income Tax Rates | Tax @ 22% + 4% Cess Subject to satisfying conditions u/s 115BAA(2) of the Income-tax Act 1961 | Tax @ 22% + 4% Cess Subject to satisfying conditions u/s 115BAA(2) of the Income-tax Act 1961 | Tax @ 30% + 4% Cess |
| Dividend Distribution Tax | No DDT is levied for dividend declared after 31st March 2020 | No DDT is levied for dividend declared after 31st March 2020 | DDT is not applicable |
| Employee Stock Option Plan | ESOP can be issued | ESOP is not applicable | ESOP is not applicable |
| Cost of Registration | Approx. 7,999/- | Approx. 5,999/- | Approx. 6,499/- |
You can also check the full procedure of the Private Limited Company here
