Q. What is a difference between a Private Limited Company and One Person Company (OPC)?

Paras Mehra February 9, 2017 903 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:

One Person Company (OPC)

Private Limited Company

A Single person can register a One Person Company (OPC)

Atleast two persons are required to register a private Limited Company.

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.

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.

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).

ONE PERSON COMPANY