Filetype PDF | Posted on 21 Jan 2023 | 3 years ago
Authentication
digital resources
347x Filetype PDF File size 0.33 MB Source: www.cnkindia.com
Private Limited Company, OPC and
LLP – a comparison
CNK & Associates LLP
cnkindia.com
Private Ltd Co, OPC and LLP- a comparison For Private Circulation
Private Limited Company, OPC and LLP- a comparison
The structure of the three most preferred business entities in India-Private Limited Company (PLC), One Person Company (OPC) and
Limited Liability Partnership (LLP) is quiet varied. There are different laws and regulations governing each of them. PLC and OPC are
governed by the Companies Act, 2013 and the corresponding Companies Act Rules while LLP is required to comply with the statutory
requirements of LLP Act, 2008 and the corresponding Rules.
Given below is the comparison chart showing various requirements of PLC, OPC and LLP.
Sr. Comparatives Private Limited One Person Company Limited Liability
No. Company Partnership
1 Governing Law and The Companies Act, 2013 and The Companies Act, 2013 The LLP Act, 2008 and the
Regulatory Authority the Ministry of Corporate and the MCA MCA.
Affairs (MCA)
2 Registration With the MCA under the With the MCA under the With the MCA under the LLP
Companies Act, 2013 Companies Act, 2013 Act, 2008
3 Legal Structure/Status Company is a body corporate Company is a body corporate LLP is a body corporate formed
formed and incorporated under formed and incorporated and incorporated under the LLP
the Companies Act, 2013 and under the Companies Act, Act, 2008 and has a legal entity
which has a legal entity separate 2013 and which has a legal separate from that of its
from its members having entity separate from its partners having perpetual
perpetual succession. member/director and succession.
nominee director having
perpetual succession
4 Eligibility Any individual may form a PLC. Only a natural person who is Any individual and body
an Indian citizen and resident corporate may be a partner in
in India- LLP
CNK & Associates LLP Page 2 of 11
Private Ltd Co, OPC and LLP- a comparison For Private Circulation
Sr. Comparatives Private Limited One Person Company Limited Liability
No. Company Partnership
shall be eligible to
incorporate an OPC;
shall be a nominee for
the sole member of an
OPC
5 Minimum requirement for 2 Shareholder 1 Shareholder 2 Designated Partners who are
formation 2 Directors 1 Director individuals and at least 1 of
Directors and Shareholders can 1 Nominee of sole member them should be a resident in
be the same person Director and Shareholder can India.
be the same person In case of an LLP in which –
All the partners are body
corporates ; or
In which 1 or more
5partners are individuals
and bodies corporate;
At least 2 individuals who are
partners of such LLP or
nominees of such bodies
corporate should act as
designated partners
6 Maximum number of 15 15 No limit
Directors
7 Maximum number of A PLC can have a maximum of An OPC can have maximum A LLP can have unlimited
shareholders 200 shareholders or members of 1 member number of partners
CNK & Associates LLP Page 3 of 11
Private Ltd Co, OPC and LLP- a comparison For Private Circulation
Sr. Comparatives Private Limited One Person Company Limited Liability
No. Company Partnership
8 Minimum Capital Rs. 1 Lac Rs. 1 Lac No limit
9 Member(s) Liability Shareholders have limited Director and Nominee Partners have limited liability
liability and are liable only to the Director have limited liability and are liable only to the extent
extent of their share capital and are liable only to the of their contribution to the LLP
extent of his/her share and not for any independent/
capital. unauthorised act of other
partners
10 Alteration of name, Filing required with RoC. Filing required with RoC. Application to be made to the
address, objects etc. Order of Tribunal or Central Order of Tribunal or Central RoC or may be directed by the
Government approval, as the Government approval, as the Central Government in certain
case may be, is required case may be, is required cases.
11 Closure/Dissolution/Wind Can be initiated Can be initiated Can be initiated-
ing up Voluntarily, or Voluntarily, or Voluntarily by the partners
By the Tribunal By the Tribunal or;
By the Tribunal
12 Transfer of economic Ownership can be transferred Ownership can be A partner’s economic rights (i.e.
rights by way of share transfer. transferred. rights of a partner to a share of
the profits and losses of the
LLP and to receive distribution
at the time of winding up) in the
LLP shall be transferable.
However, such a transfer shall
not by itself cause the partner’s
disassociation or a dissolution
CNK & Associates LLP Page 4 of 11
no reviews yet
Please Login to review.
