Difference one person company private company and public company
Answers
Answer:
OPC restricts to issue its shares publicly. A public company permits to issue share to the general public through an IPO (Initial Public Offer). An OPC can be incorporated with one person and restrict to have more than one shareholder. Minimum one director should be appointed at the time of incorporation
Explanation:
There are few similarities as well as a few differences between the OPC and Pvt. Ltd. Co. Let us discuss both here for your better understanding.
OPC and Private Limited Company – Quick Comparison Table
Particulars OPC Pvt. Ltd. CO.
Law Applicable Companies Act 2013 Companies Act 2013
Minimum share capital No requirement for minimum share capital. If capital exceeds 50 lakhs, opc gets converted to Pvt. Ltd. No requirement for minimum share capital
Members required
Minimum one
Maximum one
Minimum two
Maximum up to 200
Directors required
Minimum one
Maximum 15
Minimum two
Maximum 15
Board meeting One meeting in each half of the year. The gap between the two meetings must be at least 90 days One meeting in each quarter of the year. The maximum gap between the two meetings can be 120 days
Statutory Audit Compulsory Compulsory
Annual Filing Financial Statements and Annual returns to be filed with registrar Annual accounts and Annual returns to be filed with RoC
Liability Limited Limited
Transferability of shares Can be made by altering MOA Can be easily transferred
Foreign Direct Investment Not eligible for FDI Eligible via automatic route
Suitable to which type Individuals whose capital requirements are 50 lakhs and turnover is less than 2 crs Business, trade, manufacturers, large industrial establishments
Company Name Should end with (OPC) Pvt. Ltd./ (OPC) Ltd. Should end with Pvt. Ltd.
Have more questions about Private Limited Company Click here
One Person Company and Private Limited Company has a lot of similarities yet they both are different in many of its characteristics. If you are one person who wants to start a business One Person Company is definitely for you as the concept of One Person Company (OPC) was introduced with an objective to encourage single and enthusiastic entrepreneurs to operate own venture. While in case you are more than one persons who wish to start the business together than Private Limited Company is for you.