A comparison document between OPC vs LLP vs Pvt Ltd vs Partnership vs Sole Propreitorship

1. A Comparison
One Person Company vs Pvt Ltd vs LLP vs Sole
Proprietorship vs Partnership

2. FEATURES OPC PVT. LTD. LLP SOLE PROP
PARTNERSHIP
FIRM
Legality
It is a separate legal
entity
It is a separate legal
entity
It is a separate legal
entity
Not a separate
legal entity
Not a separate
legal entity
Governed by Companies Act 2013 Companies Act 2013
Limited Liability
Partnership Act 2008
NA
Indian
Partnership Act
1932
Registration
Has to be registered
with ROC. Certificate
of Incorporation is
issued by ROC
Has to be registered
with ROC. Certificate of
Incorporation &
Certificate of
Commencement of
Business is issued by
ROC
Has to be registered
with ROC. Certificate
of Incorporation is
issued by ROC
There is no
process of
registration as it
is not a separate
legal entity
Not mandatory.
Unregistered
Partnership Firm
will not have the
ability to sue.

3. FEATURES OPC PVT. LTD. LLP SOLE PROP
PARTNERSHIP
FIRM
Name
“One Person
Company” shall be
mentioned in
brackets below the
name of such
company
Name of a private
company to end with
the words “Private
Limited”
Name to end with
“LLP” Limited
Liability Partnership”
No guidelines No guidelines
Capital
Contribution
Minimum authorised
and paid up capital is
Rs. 1,00,000/-
Minimum authorised
and paid up capital is Rs.
1,00,000/-
No limit prescribed in
the Act
No guidelines No guidelines
Minimum
number of
Directors/Par
tners
1 Director who has to
be a Resident of India
2 Directors out of which
1 director has to be a
resident of India
2 Designated
Partners out of which
1 director has to be a
resident of India
No guidelines 2 Partners

4. FEATURES OPC PVT. LTD. LLP SOLE PROP
PARTNERSHIP
FIRM
Minimum
number of
shareholders/
members
1 shareholder who
has to be a Resident
of India. He has to
appoint a Nominee in
case of his death or
incapacity to contract
Minimum 2
shareholders. Can be
Body Corporates &
foreign nationals also
NA NA NA
Minimum
number of
Meetings
including
Board &
General
Meetings
At least 1 Board
meeting in each half
year and the gap
between 2 meetings
should not be less
than 90 days.
However, no Board
Meeting required, if
there is only one
director. No
requirement of AGM.
At least 4 Board
Meetings, one in each
quarter & the gap
between 2 meetings
should not be more than
120 days. AGM to be
held within 6 months
from closure of
Accounts.
No specified limits NA NA
Annual Filings
Financial Statements
and Annual Return to
be filed with ROC
Annual Accounts and
Annual Return to be
filed with ROC
Annual Statement Of
Accounts And
Solvency & Annual
Return has to be filed
with ROC
NA NA

5. FEATURES OPC PVT. LTD. LLP SOLE PROP
PARTNERSHIP
FIRM
Audit
Compulsory,
irrespective of share
capital and turnover
Compulsory, irrespective
of share capital and
turnover
Required, if the
contribution is above
Rs.25,00,000/- or if
annual turnover is
above Rs.
40,00,000/-
NA Compulsory
Foreign
Nationals as
shareholders/
Partners
NA – Has to be a
Resident of India
Foreign nationals can be
shareholders, however
there are separate RBI
guidelines to be
followed
Foreign nationals can
be partners, however
there are separate
RBI guidelines to be
followed
NA
Foreign
nationals cannot
form partnership
firm.
Taxability
No amendment
made in the Income
Tax Act yet. But may
be treated like pvt
ltd.
The income is taxed at
30% + surcharge + cess
(Surcharge rates will
vary)
The income is taxed
at 30% + surcharge+
cess (Surchage rates
will vary)
As per tax slabs
applicable to
personal income
The income is
taxed at 30% +
surcharge+ cess
(surcharge rates
will vary)

6. FEATURES OPC PVT. LTD. LLP SOLE PROP
PARTNERSHIP
FIRM
Liability Limited Liability Limited liability Limited liability Unlimited Liability
Unlimited, can
extend to the
personal assets
of the partners
Conversion
Can be converted
into a public/private
Company
Can be converted into a
Public Company/LLP
Cannot be converted
into a Private
Company/Public
company/OPC
NA
Can be
converted to a
Private Company
Dissolution
Not prescribed – To
follow the same as
for Private Limited
Company
Very procedural & time
consuming. Voluntary
Winding up under FTE/
by Order of National
Company Law Tribunal
Less procedural
compared to
Company. Voluntary/
by Order of National
Company Law
Tribunal
NA
By agreement of
the partners,
insolvency or by
Court Order

7. For More Info
Contact Vinay Jaisingh at +91-9844499789 or
vinay@straiteis. In