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Government of India has initiated two path breaking programs, “Make in India” and “Start-up India”. Both the programs have aimed to fulfill the purpose of job creation, entrepreneurship, furthering secondary and territory sector, boosting national economy and to get India global recognition. Both of these initiatives provide financial support, subsidies and derive several ways to encourage new companies.
To be a part of “Make in India” or “Startup India”, you have to choose a particular form of legal entity to incorporate. Based on your business idea, business constrains, scalability issues, funding factors, tax benefits and factors, you can collectively choose a particular form of legal entity.
There are various forms of legal entities of business that can be registered to start the business. The following comparison will help you understand the difference between Private Limited Company, One Person Company (OPC) and Limited Partnership (LLP).
|Factors of comparision||Private limited company registration||One person company registration||Limited Liability Partnership registration|
|Minimum Requirement||Members-2, Directors-2||Member-1, Director-1||Designated Partners-2|
|Minimum Capital||Minimum Capital required||No minimum requirement||No minimum requirement|
|Compliance Requirements||Annual Return Filing Board Meetings & General Meetings||Annual Return Filing No Board Meetings, if only one director No General Meetings||Annual Return Filing|
|Statutory Audit||Compulsory||Compulsory||If Contribution > Rs 25lacs or, Turnover > Rs. 40lacs|
|Conversion||Can be converted into LLP||Cannot be converted before 2 years||Cannot be directly converted into a Private Limited Company|
|Time Taken for Registration||20-25 Working Days||20-25 Working Days||20-25 Working Days|
|Deliverables||Digital Signature Certificate, MOA, AOA, Certificate of Incorporation, PAN, TAN||Digital Signature Certificate, MOA, AOA, Certificate of Incorporation, PAN, TAN||Digital Signature Certificate, LLP Agreement, Certificate of Incorporation, PAN, TAN|