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One Person Company
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Limited Liability
Partnership
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Partnership
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Companies Act
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Private
Limited Company
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Public
Limited Company
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Entity
Registration
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Registered
with the MCA (Ministry of Corporate Affairs) under the Companies Act 2013
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Registered
with the MCA (Ministry of Corporate Affairs) under the LLP Act, 2008.
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Registered Under Indian Partnership Act, 1932 and the rules
made there under.
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Registered
with the MCA (Ministry of Corporate Affairs) under the Companies Act 2013
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Separate Legal Entity
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Yes
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Yes( Section 3)
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Not a separate legal entity
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Yes
.
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Registration Name Approval
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Mandatory
Registration
,The
Name approval process needs approval from ROC. “One Person Company” needs to
be mentioned in brackets below the name of such company.
Name
is as Per Choice once ROC gives an Approval
Note- A proposed name can be reserved for the purpose of
incorporation of a company or change of name of an existing company through
the RUN service by logging into the MCA portal along
with a fee of Rs. 1000/-.
An approved name is valid for a period of
(i) 20 days from the date of approval (in case
name is being reserved for a new company) or
(ii) 60 days from the date of approval (in
case of change of name of an existing company)
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Mandatory
Registration
,The
Name of the LLP needs approval from the Registrar of Company. Already
existing names are not permitted. The Name of the LLP must have an ending
with "Limited Liability Partnership" or "LLP"
Name
must Suffix Limited Liability Partnership
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Registration is optional except in the State of Maharashtra.
Name
is as Per Choice once ROC gives an Approval
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Mandatory registration with Registrar of Companies
Name must suffix” Private Limited “for Private Limited Companies
and “Limited” in case of Public Limited
Note-: A proposed name can be reserved for the purpose of
incorporation of a company or change of name of an existing company through
the RUN service
by logging into the MCA portal along with a fee of Rs. 1000/-.
An approved name is valid for a period of
(i) 20 days from the date of approval (in case
name is being reserved for a new company) or
(ii) 60 days from the date of approval (in
case of change of name of an existing company)
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Legal Document
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Nominee
Consent
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LLP Agreement
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Partnership Deed
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Memorandum of
Association
Articles of Association
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Minimum Paid Up
Capita
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The minimum paid up capital at the time of registration of
a company shall be
- One Person Company: Re.1/-
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- Private Limited Company: Rs.2/-
- Public Limited Company: Rs.7/-
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Subscribers
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One Person Company
1
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Private Limited 2
Public Limited 7
Producer company 10
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Liability of the
Members
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The
Shareholders in an OPC are liable only to their shares, which means it has
limited liabilities.
The
Shareholders in an OPC are liable only to their shares, which means it has
limited liabilities.
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The
Partners of an LLP have limited liabilities and it extends only till the
amount that they have contributed. the partners or members are not
responsible for the liabilities and debts of the Company.( Section 3), , except in case of intentional
fraud or wrongful act of omission or commission by the partner or where the
number of partners fall below the minimum.
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Unlimited.
Partners are severally and jointly
liable for actions of other partners and the firm and liability extend to
their personal assets.
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Limited to the amount required to be paid up on each share
or where the number of share-holders fall below the minimum
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Transferability
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Ownership
can be transferred to the “nominee” appointed in case of the director’s death
or incapacity to contract.
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Ownership
can be transferred
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Members
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Minimum
one person, who has to be an Indian resident, is required to start an OPC. It
is necessary to appoint a Nominee.
Minimum
1 Director/ sole owner of the company
Maximum 15 Directors
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An
LLP needs to have a minimum of two persons to start doing business. It can
have maximum 20 members. (10 in case of a Firm carrying on the business of
banking)
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Minimum 2
partners
No bar on maximum number of
partners
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Minimum-
2 shareholders
Maximum-200
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Minimum
– 7
No bar on maximum number of shareholders
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Voting
Rights
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As per the terms of LLP Agreement.
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Based on Partnership Agreement. Generally on the basis of
Profit Sharing Ratio.
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Voting rights are decided as per the number of shares held
by the members.
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Foreign Ownership
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Foreigners
are not allowed to invest in OPC. They have to be a Resident of India.
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To
be an investor or member of an LLP, the foreign nationals need to get prior
approval of the Reserve Bank of India.
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Foreigners
are not allowed to invest in Partnership Firm. They have to be a Resident of
India.
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Foreign Nationals
and Non-resident Indians can be a member of a Company as per the FDI
policies.
It is much easier to attract FDI
in A Company than a partnership or an LLP.
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Foreign Direct
Investment
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Not
Allowed
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Foreign Nationals or Non-Resident Indians can be a Partner
in an LLP but subject to some restrictive guidelines and compulsory approval.
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Not
Allowed
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Allowed
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Remuneration
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As
per LLP Agreement
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The firm can pay remuneration to its partners.
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The firm can pay remuneration to its partners/ Directors as
per the provisions of Companies Act.
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Annual Statutory
Meetings
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Minimum
2 Board Meeting are Mandatory if there
is more than One Director.AGM Not Mandatory
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As
Per LLP Agreement
/alike
Partnership Firm
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No
Provision of Holding any Meeting
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Board Meetings and General Meetings are required to be held
in the prescribed procedure and for the prescribed number of times as per
drafted MOA AOA
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Annual Filing
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OPC
must file the Financial statements and annual return with ROC.
–
No requirement of preparing cash Flow in the annual financial statements
– Annual
returns can be signed by the Director himself instead of A Company Secretary
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Annual
Statement of Accounts & Solvency along with the Annual Returns and Tax
Returns must be filed with the Registrar each year under Double Entry
System on accrual basis. Basis .
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No Statutory records but may have to keep records as per
the Income Tax Act.
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Annual
Statement of Accounts & Solvency along with the Annual Returns and Tax
Returns must be filed with the Registrar each year under Double Entry
System on accrual basis. Basis .
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Auditing
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All LLP except for those having turnover less than Rs.40
Lacs or Rs.25 Lacs contribution in any financial year are required to get
their accounts audited annually as per the provisions of LLP Act 2008.
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as per the provisions of the Income Tax Act
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Annually
as per Companies Act ,1956
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Tax
Structure
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No
provisions mentioned in the IT Act yet. Hence is treated as a Private Limited
i.e. 30% in addition to the surcharge
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Income of Company
is Taxed at a Flat rate of 30% or 25% Plus surcharge as applicable.
Profit-making Companies but those
claiming Tax Exemption (except SEZ) have to pay 15% Minimum Alternate Tax
(MAT)
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Income of
Partnership is Taxed at a Flat rate of 30%. No surcharge.
Also profit-making firms but
tax-exempt don’t have to pay Minimum Alternate Tax (MAT)
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Same as
Partnership Firm. But Two disadvantages as compared to a firm:
1.
Levy of
Minimum Alternate Tax like Companies where book profit taxes is levied in
case the income is tax exempt
2.
Presumptive
taxation benefit not available u/s 44AD.
Two key advantages over Companies:
1.No Deemed Dividend Taxes
2.No Dividend Distribution Taxes
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Entity Conversion
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Cannot
be converted before 2 years
when a One Person Company reaches a paid up Capital of 50
lakh rupees or more or when the average turnover of the company which is Rs.
2 Crores or more for a period of 3 years, then the company shall be converted
into a private limited company after making the necessary changes in the
memorandum of association and articles of association and shall comply with
all the requirements of a private limited company.
Conversion of a private limited company into a one person
company- A private limited company which does not have a paid up capital of
more than Rs. 50 lakhs or where the average annual turnover for the past 3
years is less than Rs. 2 Crores can convert itself into a One Person Company
and enjoy the benefits as such.
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Cannot
be converted into a company
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Restrictions
on receipt of money from shareholders/ Directors/ Partners and Others (except
banks and NBFC)
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No restrictions for Directors Receipts
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As Per LLP Agreement
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No restrictions under the Indian Partnership Act, 1932
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Considerable restrictions as per the Companies Act 2013and
the Acceptance of Companies Deposits Rules. It has become difficult for
Shareholders and others to lend money to Companies because of the same.
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How We Assist you
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After
obtaining the below primary documents
- Identity Proof & Permanent Account Number (PAN)
Cards and acceptable residence proofs of Directors and Nominee
1.We
Assist in getting DIN and DEC
2.
Assist in Applying Name of a Company
3.Once
you provide us a consent of Nominee we
further assist in completing final final
incorporation forms with the Memorandum and Articles
and other required documents
4.so that you can receive shall
receive the final
incorporation certificate from the register of companies.
(
Will be done from ROC)
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After
obtaining the below primary documents
- Identity Proof & Permanent Account Number (PAN)
Cards and acceptable residence proofs for all Partners/ Designated
Partners.
- No Objection Certificate from
the owner and the Address proof of the place which shall be the
registered office address of the LLP
1.We
Assist in obtaining Minimum two DIN and DEC
(There
must be Minimum two Designated
Partners in LLP)
2.
Assist in Applying Name of a Company(Form 1)
3. Obtaining in Incorporation Certificate
Form 2
4.Preparation
of LLP Deed Disclosure of Partners ,Sharing Capital Contribution, Ratio, Liabilities
Terms and Duties etc
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Form 3 with 30 Days of Receiving Certificate of Incorporation
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1..We
Assist in getting DIN and DEC
2.
Assist in Applying Name of a Company
3.
Obtaining in Incorporation Certificate Form
4
Preparation of Partnership Deed
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After
Obtaining Documents as per Our Check List in Email
1.We
Assist in obtaining Minimum DIN and DEC
2.
Assist in Applying Name of a Company
3. Obtaining in Incorporation Certificate
4.Preparation
of MOA,AOS
5.Receiving
Certificate of Incorporation( Will be done from MCA)
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