Q. What is a difference between a Private Limited Company and One Person Company (OPC)?
Paras Mehra February 9, 2017 1.47K Views
A private Limited Company is the sole choice for startups or two persons who are planning to start the company in India. On the other hand, a One Person Company (OPC) is the substitution for sole proprietorship business in India. Let’s see the difference:
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One Person Company (OPC) |
Private Limited Company |
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A Single person can register a One Person Company (OPC) |
Atleast two persons are required to register a private Limited Company. |
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A OPC cannot raise funding by selling its stake and hence not eligible for startups. |
It is a perfect form of business for startups in India. Private Limited Company is the most chosen form of business. |
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OPC can have only one shareholder but can have more than one director. |
Minimum of two shareholders and two directors are needed to start the private company. |
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It can be converted into private limited company only after two years. |
It can be converted into Public company but not into a One Person Company (OPC). |
