Compare Private Limited | Limited Liability | One Person Company


Factors Of Comparison Private Limited Company One Person Company Limited Liability Partnership
● Governing Law & Regulatory Authority ● The Companies Act 2013 & the Ministry of Corporate Affairs(MCA) ● The Companies Act 2013 & the Ministry of Corporate Affairs(MCA) ● The LLP Act 2008 & the Ministry of Corporate Affairs(MCA)
● Minimum Requirement for Formation ● 2 Shareholders
● 2 Directors
● Directors & Shareholder can be the same person
● 1 Shareholder
● 1 Director
● 1 Nominee of sole member
● Director & Shareholder can be the same person
● At least 2 partners
Maintenance of Books of Accounts ● Mandatory ● Mandatory ● Mandatory
Maintenance of Basic Statutory Records ● Minutes of the Board Meetings (min. 4 annual) & General Meetings.
● Share Register & Share Certificates.
● Statutory Register
● Share Certificates.
● Statutory Register
● Optional
● Minutes of the Meetings
Board Meetings ● First meeting within 30 days from the date of incorporation
● Minimum four board meetings in a calendar year
● No meetings required if the company has only one director
● No compulsory meeting.
● Meetings of partners may be called for events such as:
● Induction of the heir of any existing partners as a partner(s) of the LLP
● Amendment in the objects of the LLP
Annual General Meetings(AGM) ● Mandatory ● No AGM required ● Not Applicable
Annual ROC Filings

● Balance sheet, profit &loss account, cash flow statement, & statement of changes in equity in Form AOC-4 Annual return in Form MGT-7

● Balance sheet, profit &loss account, cash flow statement, & statement of changes in equity in Form AOC-4 Annual return in Form MGT-7

● Statement of account & solvency in e-Form 8 Annual return in e-Form 11
Annual Tax Filings ● Mandatory- tax return in form ITR-VI ● Mandatory- tax return in form ITR-VI ● Mandatory- tax return in form ITR-V
Statutory Audit ● Yes Compulsory. No turnover limit. ● Yes Compulsory. No turnover limit. ● Not Compulsory if turnover < Rs.40 Lakhs and capital contribution < Rs. 25 Lakhs
Alteration of Name | Address | Objects .etc
Conversion
● Filing required with ROC approval from central govt in some cases

● A Private Company can be converted into OPC subject to:
  • paid up share capital up to 50 lakh , OR
  • Average annual turnover up to two crore
  • ● Filing required with ROC approval from central govt.in same cases

    ● An OPC shall be converted into Private Limited Company mandatorily, subject to:
  • paid up share capital more than 50 lakh, and
  • Average annual turnover more than two crores during preceding three financial years
  • ●Filing required with ROC

    ● Cannot be converted into a Private Limited Company directly
    Closures/Dissolution ● Can be initiated voluntarily,
  • By the Shareholder, OR
  • By the creditors, OR
  • By the Tribunal
  • ● Can be initiated voluntarily,
  • By the Shareholder,OR
  • By the creditors, OR
  • By the Tribunal
  • ● Can be initiated voluntarily,
  • By the Shareholder, OR
  • By the Partners, OR
  • By the order of the Tribunal
  • Taxation ● Taxed at 30% ● Taxed at 30% ● Taxed at 30%
    Fund Raising Options ● High ● Low ● Low
    Compliance Cost ● High ● Medium ● Medium
    Recommended For ● Start-ups and growing companies ● Sole promoters ● Professional services firms
    Ease of Accommodating Investment ● Very easy to accommodate ● Possible, but severely unlikely ● Possible, but unlikely
    Tax Advantages ● Few benefits ● Few benefits ● Few benefits
    Perpetual Existence ● Yes ● Yes ● Yes