A one-person company is a company that has only one person as to its member/shareholder. It means that only one/single person can become the Shareholder of One Person Company. However there is no special restriction on maximum no of director it means one person can have maximum 15 directors which are applicable for other company. Further there is an additional requirement to appoint as nominee in the one person company. Such nominee will become shareholder of company in case of death of shareholder.
- Only one person can incorporate one person company (OPC) whereas minimum 2 members are required to register private limited company.
- One person company (OPC) can register with just one director whereas there must be two director for private limited company.
- One person company (OPC) is not required to conduct Annual General Meeting (AGM) whereas private limited company is required to conduct annual general meeting for every financial
- One person company (OPC) is not required to prepared Cash Flow Statement whereas Private Limited company is required to prepare cash flow statement if certain conditions are satisfied
- One person company (OPC) is required to appoint nominee whereas Private Limited Company is not required to appoint nominee.
- One person company (OPC) is compulsorily required to use OPC with their name however there is no as such requirement for Private Limited Company.
- One person company (OPC) is required to conduct minimum two board meeting whereas there are 4 board meeting are required for Private Limited Company
- There is no requirement of minimum paid up capital for One person company (OPC) whereas private limited company must have at least 1 Lakh as authorised up capital.
- Easy Registration Process
- Lesser Compliance Cost
- Option to Convert in Private Limited Company
- Only one member is required for registration
- Entire profit of company belongs to just one person
- Easy availability of loan as complete documentation can be complete by just one person
- Not required to hold annual general meeting
- Quorum is not required for One person company (OPC)
Documents for One person company (OPC) is same as required for Private Limited Company however in private limited company documents for 2 share holder is required whereas in One person company (OPC) documents of single shareholder is required. Further basis KYC documents of Nominee shall also be required for One person company (OPC).