OPC vs LLP vs Pvt Ltd – Top 10 Major Differences
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OPC vs LLP vs Pvt Ltd – Top 10 Major Differences

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.

Difference between OPC, LLP and Pvt Ltd Company.
ParticularsPrivate Limited Company (PLC)One Person Company (OPC)Limited Liability Partnership (LLP)
ConstitutionPrivate Limited Company is a separate legal entity registered under the Companies Act, 2013One 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  forBusinesses 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 Members1 Member2 Members
  ComplianceIn 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.
TransferabilityOwnership can be transferred by way of share transferOwnership can be transferred.Ownership can be transferred.
Capital RaisingThe capital raising is very easy in case of Private Limited CompanyThe 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 RatesTax @ 22% + 4% Cess Subject to satisfying conditions u/s 115BAA(2) of the Income-tax Act 1961Tax @ 22% + 4% Cess Subject to satisfying conditions u/s 115BAA(2) of the Income-tax Act 1961Tax @ 30% + 4% Cess
Dividend Distribution TaxNo DDT is levied for dividend declared after 31st March 2020No DDT is levied for dividend declared after 31st March 2020DDT is not applicable
Employee Stock Option PlanESOP can be issuedESOP is not applicableESOP is not applicable
Cost of RegistrationApprox. 7,999/-Approx. 5,999/-Approx. 6,499/-
PLC/OPC/LLP

You can also check the full procedure of the Private Limited Company here

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