Difference between private limited and OPC


The Companies Act, 2013 introduced the concept of OPC incorporation entrepreneurs who want to create an individual economic entity. Like any company, a one person company is a separate legal entity from its promoter and is easy to incorporate. One Person Company (OPC) allows a single member to join and run a business. The OPC should be include on the MCA portal.

one person company

OPC incorporation

One Person Company incorporation in Chennai is a separate entity from its promoter / member. He is able to do business in his own name.

Control with a single owner

It becomes easier to control and manage any entity if there is a single owner. With the inclusion of One Person Company incorporation in Chennai (OPC), the owner can make quick decisions and focus on business development.

Minimum compliance

Even in the case of One Person Company incorporation in Chennai (OPC) compliance is less than in a private limited company. There is no need to hold an annual or extraordinary general meeting; only one meeting of the Board of Directors is require in each part of the year. Form filing with Registrar Company F Company (ROC) is also less than that of a private limited company. Any remuneration paid to the director will be allow as a deduction as per the Income Tax Act. Any rent or interest paid to the director is also allow as a deductible expense which reduces the profitability of the company.

difference between opc and private limited

Difference of private limited company and Opc


A One Person Company incorporation in Chennai is a company that has only one member. A one person company is the sole proprietorship and a combination of companies in which the company can register with only one member. A private limited company is a type of business that is register to give the business a separate legal entity other than its directors and shareholders.

one person company registration

Business registration

The process of registration of a private company limited company is more complicated than the process of OPC registration as OPC does not require a board of directors or multiple members to register. The cost of registering a private limited company is also higher than the cost of Opc incorporation

Number of members in the company

A private limited company can be started with at least 2 directors and 2 shareholders. However, an individual company can only be start with one member who can be a director and shareholder of this business. An OPC incorporation can have a maximum of 2 members and a private company can have a maximum of 200 members.


A director can also be the sole shareholder in an individual company, so the shareholder can hold 100% shares of the company. However, in the case of a private limited company, there must be at least two shareholders, and they can hold a maximum of 50% of the company’s shares.

Board of Directors

The private limited company has a full board of directors with a minimum of two and a maximum of 15 directors. However, in the case of OPC, there is no board of directors because the company has only one director.

Members of the company

In India, a one person company can be started only by an Indian citizen who is also a resident of the country. However, the private limited company can be start and operate by resident Indian nationals, NRIs and foreign nationals.

one person company merits

Merits of one Person Company

One shareholder:

In fact, a one person company can be describe as a company with only one member. A single shareholder has 100 percent shareholding.

It is important to keep in mind that company incorporation rules provide that only a natural person who is a resident of India and a citizen of India can form a company of one person. This means that other legal entities such as companies or societies or other corporate entities cannot form an individual company.

Further it also means that non-resident Indian or foreign nationals cannot form a one person company. Further rules also make it clear that at any given time only one person can be a shareholder in the company. It simply means that there cannot be two different individual companies in the name of an individual.

A director

Another important point is that there can be only one director in a one person company. But at the same time there is no restriction on more number indicators. However, according to the Act, the total number of directors should not exceed 15.

According to the Companies Act, if nothing is mention in the contain document, it will be assume that the sole shareholder will also be the sole director in one person company and in most one person companies involved it will be a practical case.


Please note that the requirements to be a resident Indian and a citizen of India also apply to the nominee. Further, if the appointee becomes a member of such company and another person is already a member of the company, then at the same time, based on the rules, he has to decide within 6 months which person’s company he is to continue. For one thing, a member can change a nominee at any time. Where a person enters into an agreement with the sole owner of the company who is also a director of that company, the company will ensure that the terms of the agreement or offer are then contain in a memorandum, unless the agreement is in writing. Recorded within minutes of the first meeting of the board of directors of the next company after signing the contract.