Difference Between LLP OPC Public & Private Company

PRIVATE LIMITED COMPANY

• The private limited company is governed by section 2 (68) of Companies act 2013 and relevant rules.
• It is a form of Business in which a small group of people manages this type of entity privately without any Public interference.
• The Document in which the constitution of a private company is written is known as “Memorandum of Association (MOA) and Articles of Association (AOA).
• To form a private limited company the requirement of minimum 2 Directors and 2 Shareholders/Subscribers.
• The private limited company having a maximum of 200 shareholders as per companies act 2013.
• The private limited company issued its share through private placements.
• As on date the incorporation of Private company is totally hassling free and Having a very low cost of Incorporation.
• It’s not raised fund from the public through public issue or it cannot issue prospectus to the general public.
• It’s cannot be listed on the National Stock Exchange or can’t sell its shares to the general public through Stock Exchange Platform.

LIMITED LIABILITY PARTNERSHIP

• It’s a form of business, which is governed by the Limited Liability Partnership Act, 2008.
• LLP having its own separate legal entity and its combination of company & Partnership Firm.
• The Document in which the constitution of LLP is written is known as “LLP Agreement”
• The LLP having a minimum of 2 partners and there is no limit on maximum partners.
• it’s can not raise fund from the general public through open offer or prospectus or public issue.
• The LLP is extended version or form of Partnership firm and having all features of partnership firm except Unlimited Liability, Separate Legal entity & sue or to be sue (LLP sue anyone or to be sue by someone to LLP not its Partners).
• The word “LLP” is mention at the end of the entity name. if it’s registered as LLP.
• LLP registration is less complex than registration of Partnership firm under the Partnership Act.
• In LLP one partner is not liable for the actions of other partners (Individual Protection), but in a Partnership firm, its happen (every partner is liable for the actions of other Partners).

OPC (ONE PERSON COMPANY)

• This form of business is governed by section 2 (62) of companies act, 2013.
• OPC is one person company in which he acts as a promoter, director and also member/shareholder of the company.
• its is extended version or form of sole proprietorship firm in which having the features of the private limited company.
• There is no paid-up capital in OPC.
• The OPC having is its own separate legal entity distinguished from its member.
• The OPC having one member and also have one nominee which is carried out business after deceased of its sole member.
• It’s cannot be listed on the National Stock Exchange or can’t sell its shares to the general public through Stock Exchange Platform.
• The cost of compliance is too low in this form of business because he doesn’t need to hold Annual General Meeting and much more exemption in Companies act, 2013.
• It’s not raised fund from the public through public issue or it cannot issue prospectus to the general public.
• OPC has minimum one Director and Maximum 15 directors.
• The perpetual succession is very low because if the nominee is denied to become a member of the company then it’s automatically dissolved.

PUBLIC LIMITED COMPANY

• The public limited company is governed by section 2 (37) of Companies act 2013 and relevant rules.
• The public limited company is used word “LIMITED” at the end of its name.
• It’s can be listed on the National Stock Exchange or can sell its shares to the general public through Stock Exchange Platform.
• It’s raised fund from the public through public issue or it can issue prospectus to the general public.
• The Public Limited Company have a minimum of 3 Director and Maximum 15 directors.
• The public limited company having no maximum limit of shareholders as per companies act 2013.
• To form a public limited company the requirement of minimum 3 Directors and 7 Shareholders/Subscribers.
• The public limited company issued its share through private placements as well as a public issue.