All Professionals are  Under One Roof

Dedicated Support

500+ Positive Reviews

Client Satisfaction Guaranteed

Hello Auditor

What is the difference between an OPC and private limited company?

1. Ownership Structure

  • OPC: Owned and operated by a single individual who acts as both shareholder and director
  • Private Limited Company: Requires a minimum of 2 shareholders and 2 directors, allowing for shared ownership and management
  • OPC is suitable for solo entrepreneurs, while Pvt Ltd supports partnership and investment

2. Number of Members

  • OPC: Can have only one member at any time
  • Private Limited Company: Can have 2 to 200 shareholders, facilitating broader ownership
  • OPC restricts collaborative ownership, unlike Pvt Ltd

3. Compliance Requirements

  • OPC: Enjoys less stringent compliance, such as exemption from holding Annual General Meetings (AGMs)
  • Private Limited Company: Must comply with more detailed statutory requirements, including board meetings, AGMs, and ROC filings
  • Pvt Ltd is subject to more regulatory oversight due to multi-member ownership

4. Fundraising and Investment

  • OPC: Cannot raise funds by issuing equity to the public or other investors
  • Private Limited Company: Can raise equity from private investors, venture capitalists, or corporate entities
  • Pvt Ltd is more suited for businesses seeking external funding

5. Conversion Flexibility

  • OPC: Mandatory to convert into a Private or Public company if turnover exceeds ₹2 crore or paid-up capital exceeds ₹50 lakh
  • Private Limited Company: No such mandatory conversion requirement and can operate and grow independently
  • OPC faces growth limitations in structure and investment scope

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *