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One Person Company (OPC) can be formed with only 1 owner, who acts as both the director as well as a shareholder of the company.There can be more than 1 director, but not more than 1 shareholder.

Though a One Person Company allows a lone Entrepreneur to operate a corporate entity with limited liability protection, an OPC does have a few limitations. For instance, every OPC must nominate a nominee Director in the MOA and AOA of the Company - who will become the owner of the OPC in case the sole Director is disabled.  Also, a OPC must be converted into a Private Limited Company if it crosses an annual turnover of Rs.2 crores and must file audited financial statements with the Ministry of Corporate Affairs at the end of each Financial Year like all types of Companies. 

Therefore, it is essential for the Entrepreneur to carefully consider the features of a One Person Company before incorporation. 



Private Limited Company can be formed with a minimum of two persons to act as Directors and shareholders are required. The shareholders can be a corporate entity or a natural person. Director can only be a living person with one Director being a Resident and Indian Citizen.

As, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and Shareholders of a Company with FDI, incorporating a company is the preferred choice of entry to India for foreign promoters.

Remarkable benefits of a Private Limited Company as 

Equity fund can be raised, Limited Liability Protection to the shareholders, 

Separate Legal Entity from its members, Perpetual Existence & Easy Transferability etc.



In Limited Liability Partnership, atleast two or more partners form a special partnership and have limited liabilities. It has a blend of the benefits of a Private Limited Company and a Partnership Firm.

Limited Liability feature of a company and the flexibility of a Partnership Firm. No partner is liable on account of unauthorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s misconduct.

LLP form of organization is usually preferred by Professionals, Micro and Small businesses that are family owned or closely-held. 



A Partnership Firm is a business entity created by persons who have agreed to share profits or loss of the business. Partnerships are a very good choice of business entity for small enterprises wherein two or more persons decides to contribute to a business and share the profits or losses.

In India, Partnerships are widely prevalent because of its ease of formation and minimal regulatory compliance.

Therefore Partnership Firms are the most prevalent type of business entity wherein a group of people are involved.