Difference between one person company and LLP

503 votes

Basic difference:

1) w.r.t to the paid up capital for OPC minimum paid up capital needs to be Rs. 1,00,000/-, but for LLP no minimum capital is prescribed;

2) w.r.t. the governing law, the OPC is a new addition in the Companies Act, 2013, but for the LLP it is governed by the LLP Act, 2008;

3) w.r.t to the Directors or Partners, for OPC it is a departure from the 2 directors requirement as was prescribed under Companies Act 1956 and now under Companies Act, 2013 it has introduced the concept of OPC or One Person Company and now company can be incorporated with one director and he needs to be an Indian. In case of LLP there needs to be 2 Partners.

4) For both, the filings needs to be with Registrar of Companies (ROC);

I mentioned about the basic differences. If you are looking for any specific requirement, you may prefer contacting any lawyer.

Advocate Abheek Saha LawRato

712 votes

One-person cannot start a company. One-person organizations are called SOLE-PROPRIETORSHIP concerns. An LLP is a Limited Liability Partnership which is a partnership between persons and the liability of each partner is defined. You can register an LLP and you have to abide by the regulatory and legal compliances.

LawRato LawRato