In the Companies Act 1956, there were two difference kinds of companies’ consolidation one was a public limited company, and the other one was a private limited company. The significant obstacle was to consolidate a privately owned business, there was a necessity of at least two individuals, and for the joining of a public company, there was of at least seven individuals required.

To beat the issue, the privately owned businesses began named two-man in which one was an ostensible director, which was made in the namesake and does not participate occupied with the company. Thusly, the law was twisted by the requirements of the financial specialist. This training was being observed and a proposition for the One Person Company.

The legislature body set the consolidation of OPC in the Companies Act 2013, under segment 3 there is the arrangement of One Person Company. The benefit of OPC is the individual can screen the check and balances of the company. The upside of OPC is additionally now another business visionary can begin his own decision of business, exchange and trade. The OPC is a cutting edge idea of the Sole Proprietorship, and the elements of a privately owned business and subsequently the upsides of OPC are more.

Similarities among LLP and OPC

In spite of numerous distinctions, there are likewise a few likenesses between the Limited Liability Partnership and the OPC somewhat. Both the Limited Liability Partnership and OPC have the different lawful element than of its individuals and accomplices. Likewise, both LLP and OPC have unending progression, which implies it doesn’t influence the presence of LLP and friends in the event of death, insolvency, leave, move, and so forth of the accomplices or individuals.

The capital is raised secretly from investors or accomplices in One Person Company and LLP as it can’t be raised or acquired from the overall population. In the OPC and LLP both, a part or an accomplice is responsible for his activities just to the risk degree of his commitment to the capital.

Difference between LLP and OPC


  • It’s a type of business, which is represented by the Limited Liability Partnership Act, 2008.
  • Limited Liability Partnership having its own different lawful substance and its blend of organization and Partnership Firm.
  • The Document where the constitution of LLP is composed is known as “LLP Agreement”
  • The LLP having at least 2 accomplices and there is no restriction on most extreme accomplices.
  • It’s cannot raise reserve from the overall population through open proposition or outline or public issue.
  • The LLP is broadened form or type of Partnership firm and having all elements of association firm aside from Unlimited Liability, Separate Legal substance and sue or to be sue (LLP sue anybody or to be sue by somebody to LLP not its Partners).
  • “LLP” is notice toward the finish of the element name. In case it’s enlisted as LLP.
  • LLP enlistment is less intricate than registration of Partnership firm under the Partnership Act.
  • In LLP one accomplice isn’t obligated for the activities of different accomplices (Individual Protection), yet in a Partnership firm, its occur (each accomplice is at risk for the activities of different Partners).


  • This type of business is represented by segment 2 (62) of organizations act, 2013.
  • OPC is one individual organization in which he goes about as an advertiser, director and furthermore part/investor of the organization.
  • Its is broadened form or type of sole ownership firm in which having the elements of the private limited organization.
  • There is no settled up capital in OPC.
  • The OPC having is its own different legitimate element recognized from its part.
  • The OPC having one part and furthermore have one chosen one which is done business after expired of its sole part.
  • It’s can’t be filed on the National Stock Exchange or can’t offer its offers to the overall population through Stock Exchange Platform.
  • The expense of consistence is too low in this type of business since he doesn’t have to hold Annual General Meeting and considerably more exception in Companies act, 2013.
  • It’s not raised asset from the general population through open issue or it can’t give outline to the overall population.
  • OPC has least one Director and Maximum 15 directors.
  • The interminable progression is exceptionally low since, supposing that the chosen one is denied to turn into an individual from the organization then, at that point, it’s consequently broken up.

Advantages of OPC

Free Existence:

The One Person Company is considered as a different legitimate element. According to the law, an organization is an individual, having a typical seal, and interminable progression. It gets the position to practice every one of the elements of a fused individual.

Limited Liability:

In contrast to public limited organization and private limited organization , the idea of limited obligation of One Person Company in India infers that the responsibility of the part is will be up to the degree of his offer in the organization. In an OPC, one individual holds the whole offer and has total authority over the activity of the business. In this way, it tends to be explained that the risk of the individual will be to the degree he has put resources into the business.

Separate Property:

An OPC will have its own different property as it acquires its own character and capacities as a different lawful substance. The OPC will turn into the proprietor of its resources, and the individuals won’t have any insurable rights in the resources of the organization.

Adaptability of Shares:

One Person Company has just a single investor. The issue of moving a piece of the offer doesn’t emerge at all since, supposing that it is done, the organization will stop to be a “one individual” organization. Moving every one of the offers is likewise not practicable as it’ll change the whole construction of the organization as the proprietor of the organization is evolving. The issue has not yet been managed with the clarification that in an OPC, move of offer isn’t permitted.

Expense Flexibility and Savings:

OPC make a substantial agreement with its investor or directors. This implies as a director you can get compensation, as a lessor you can get lease, as a bank you can propel cash to your own organization and procure revenue. Directors’ compensation, lease and interest are a deductible cost which decrease the benefit of the Company and at last cuts down available pay of your business.