OPC vs Pvt Ltd - Know the Difference Between Them

One Person Company

OPC vs Pvt Ltd - Know the Difference Between Them

You must have heard both the terms ‘One Person Company’ and ‘Private Limited Company’. Both of them are popular types of companies in India, registered under the Companies Act of 2013. Both One Person Company and Private Limited Company are registered as private companies by the Registrar of Companies (RoC) of MCA. However, there are many differences between OPC and Pvt Ltd. If you are confused about whether you want to get your company registered as an OPC vs Pvt Ltd, knowing the difference between them might help you to make an informed decision while applying for company registration in India.

What is OPC?

One Person Company, abbreviated as OPC, is a company registered under the Companies Act of 2013. An OPC is a relatively new business model/company type in India as it did not exist before Companies Act of 2013. An OPC has only one person as its member runs the business. He is the sole owner of the company.

What is Pvt Ltd?

A Private Limited Company, abbreviated as Pvt Ltd, is a privately held business entity with limited liability. It is registered under the Companies Act of 2013. A Pvt Ltd is one of the common and popular types of companies in India. A Pvt Ltd requires a minimum of 2 members and not more than 200 members. 

OPC vs Pvt Ltd: Key Differences

The following table shows the difference between One Person Company and Private Limited Company:

 

Parameters

OPC 

Pvt. Ltd.

Legislation

Companies Act 2013

Companies Act 2013

Minimum Share Capital Requirements

No minimum share capital requirement. However, if the share capital goes beyond 50 lakhs, the OPC gets converted to Pvt Ltd. 

No minimum share capital requirement.

Minimum/Maximum Members

An OPC is permitted to have only one member i.e., the business owner.

At least 2 members are required and a maximum of 200 members are permitted for Pvt Ltd.

Minimum and Maximum Directors

An OPC requires at least a minimum of one director and allows for a maximum of 15 directors. 

An OPC requires at least a minimum of one direction and allows for a maximum of 15 directors.

Name of the Company

OPC’s name should be registered as (OPC) Pvt. Ltd. or (OPC) Ltd.

Every Private Limited Company’s name must end with Pvt. Ltd.

Filing of Annual Returns

Financial Statements and Annual returns filing with RoC is mandatory.

Annual accounts and Annual returns filing with RoC is mandatory.

Board Meeting

At least one meeting in each half of a calendar year is required. 


The gap between the two meetings must be of a minimum of 90 days.

At least one meeting in each quarter of the year is mandatory. 


The maximum gap between the two meetings should not exceed 120 days.

Transferability of Shares

Possible after making changes to MoA

Easily transferable

FDI Eligibility

Not eligible for Foreign Direct Investment (FDI)

Eligible for FDI via automatic route

In this blog post, we provided you with OPC vs Pvt Ltd and their key differences. Before beginning the process of company registration in India, it is necessary to learn about the key differences between various types of companies in India. Only then can you make the right decision regarding the business model which is appropriate for your business.. If you need assistance in One Person Company Registration or Private Limited Company Registration, get in touch with Registrationwala’s seasoned Company Registration Consultants now! 

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