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Which is better, OPC or private limited?

Both have their own pros and cons and the decision depends on the situation. If youu2019re too particular about starting your company on your own and youu2019re confident that you donu2019t need any external financial assistance or partners in future, you can opt for OPC.<br><br>However there are several restrictions for an OPC. You wonu2019t be able to accommodate another person into the company is the first issue. Moreover, there are restrictions on transferring the shares to another person.

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Which is better, OPC or private limited?

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  1. Both have their own pros and cons and the decision depends on the situation. If you're too particular about starting your company on your own and you're confident that you don't need any external financial assistance or partners in future, you can opt for OPC. There is no fixed price or cost for registering a Private Limited Company in India. There are a number of dependent variables that determine the cost of incorporation of a Private Limited Company in India such as the location of registered office, number of directors, amount of authorised capital etc. Which is better, OPC or private limited? How much does a Private Limited Company Registration cost in India?

  2. The efforts and costs involved in incorporating an OPC are similar to that of a private limited company. An OPC requires a nominee to be appointed at the time of incorporation itself to take over the company in the event of death of the original shareholder. However there are several restrictions for an OPC. You won’t be able to accommodate another person into the company is the first issue. Moreover, there are restrictions on transferring the shares to another person.

  3. An alternate arrangement for OPC is to float a private limited company with 2 shareholders where one holds a significant portion say more than 90% and the other holding the remaining portion. In this manner you can get rid of the the restrictions to an OPC. Thank you!! For Company Registration in Kerala, visit parpella.com

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