One Person Company Registration in India or Online OPC Registration in Indiais a recent introduction in India under the Companies Act 2013. In OPC as the name suggests a single person can open, own and manage the business. The other corporate entities requireat leastminimum of two people but that is not the case in One Person Company. It is a brand new option given to the individuals who want to start up their own business.
Private Limited Company is the most common and popular form of corporate legal entity in India. Private limited company is also governed under the Companies Act, 2013. To form this kind of company a minimum of two shareholders and two directors are required unlike in the case of OPC.
The following are the differences between the Online OPC Registration in India and Private Limited company in India:
- Cost of Registration: The registration cost is higher of a Private Limited Company than the cost of One Person Company in India
- Number of Person Required to Incorporate: Minimum two people are necessary for establishment of Private Limited Company whereas in One Person Company, one person is required to be the Director &Nominee Director for emergency cases if the Director for any reason is not able to execute his functions.
- Board of Directors: Private Limited Company has a Board of Directors with minimum number being two and maximum being seven. In One Person Company there is no concept of Board of Directors as it can be managed by a single person.
- Shareholding: No single person can hold 100% share in a Private Limited Company as the company must have minimum of two shareholders. The 100% shares of a One Person Company can be held by a single person.
- NRI or Foreign Nationals: Private Limited Company can be and are managed by NRIs or Foreign Nationals but the power to start up One Person Company is only given to Indian Citizens
- Limitations: A Private Limited Company has no limitation when it comes to conversion to any other corporate entity in any situation whereas One Person Company has to convert into Private Limited Company if the annual sales turnover is more than Rupees 2 Crore or the paid up capital exceeds Rupees 50 Lakhs.
- Post Incorporation:Private Limited Company being one of the oldest and popular form it is easier to obtain registration and licenses but One Person Company has been recently introduced which makes it difficult to obtain few registration and licenses as some departments are still not updated with this form
- Compliance Requirements: The compliance requirements of a One Person Company and Private Limited company are almost similar. Both One Person Company and Private Limited Company are also required to get their account audited each year.
OPC being a fairly new concept and as can be seen some departments and banks are still to upgrade themselves to this kind of form a person starting or thinking to start up OPC needs a team like Company Vakil by its side to make the whole registration process of One Person Company Registration in India easier and speedy.