What is the difference between an opc and an llp firm?

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What is the difference between an OPC and an LLP firm?

 
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ha21@rediffmail.com Mumbai : 9820174108

1. An OPC is NOT an LLP.
2. An LLP is NOT a OPC.
3. For further query and/or your actual grievances /problems, meet a local Corporate Lawyer or a Chartered Accountant with all the relevant papers.

Keep Smiling .... Hemant Agarwal
VISIT:  www.chshelpforum.com

 
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One Person Company is an organisation owned by single member, as the name suggest, whereas the LLP is an organisation formed by partnership of two or more parties.

As an organisation structure, Limited Liability Partnership is the hybrid of private company and partnership firm. Talking about One Person Company, it is organised form of Sole Proprietorship firm with substantial characteristics of Private Limited Company.

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Hello, thank you for your query.

One Person Company (OPC) means a Company that has only one person as its member. An OPC is effectively a company that has only one shareholder as its member.

A Limited Liability Partnership (LLP) is the form of the business where minimum of two members are required and there is no limit on the maximum number of members. There is limited liability of the members of an LLP.

Companies Act 2013 governs OPC and Limited Liability Partnership Act, 2008 is applicable to LLP.

Other differences are as follows:

1. In OPC, there is no requirement for minimum share capital. If capital exceeds 50 lakhs, OPC gets converted to Pvt. Ltd. In LLP there is no requirement of minimum share capital.

2. Minimum and maximum members required in OPC is one. The minimum number of members in LLP is 2, and no limit on the maximum.

3. Minimum of one director is required for OPC and a maximum of 15. A minimum of two designated partners are required for LLP and there is no limit on the maximum.

4. One board meeting has to happen in each half of the year. The gap between the two meetings must be at least 90 days in OPC. In LLP no board meeting is necessary.

5. Statutory audit is compulsory in OPC. It is not compulsory is LLP unless partner's contribution exceeds 25 lakhs or actual turnover exceeds 40 lakhs.

Hope this helps you.

 

 

 
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