Whatapp

5 Steps for private limited company registration

The name of the company is the first and foremost decision that a person makes for new company registration. It is the first identity that goes out to consumers or investors that’s why it needs to be unique, desirable and one of its kind to make it stand out of the rest. Therefore, choosing a right name of new private limited company registration becomes extremely important and should be done meticulously.

Company Registration
  • Post:CA Sundram Gupta
  • June 21, 2020

Difference between One Person Company and Private limited company registration

One Person Company and Private limited company registration are two different business registration structures. One Person Company is relatively new to India and getting some traction as it has some benefits over private limited company registration.

Private limited company registration has benefits like better brand image and limited liability i.e. personal wealth of individual can’t be used to pay the debts of a Private limited company. On the contrary, private limited companies have more compliance cost which impacts the profitability of the start-up.

Comparison for One Person Company and Private limited company registration:

 

One Person Company

Private limited company

Shareholder

Single

Minimum: 2
Maximum: 200

Director

Minimum: 1
Maximum: 15

Minimum: 2
Maximum: 15

Liability

Limited

Limited

Tax Rate

25%

25%

Suitable for

Paid capital should be less than Rs. 50 lakhs and Turnover should be less than Rs. 2 crore

No condition

Company Name

Ends with (OPC) Pvt. Ltd./ (OPC) Ltd.

Ends with Pvt. Ltd.

AGM, Board Meeting

Exempted

Compulsory


There are a lot of characteristics which are same for One Person Company and Private limited company registration but in case you are an individual who wants to start a new business and get the benefit of Private limited company registration then you can go for one person company registration for initial years and later convert into Private limited company. In case, you are more than one individual then you can go for Private limited company registration.

There is a reduction in compliance cost in One Person companies but it won’t significantly differ to change decisions only the basis of compliance cost. Also, One Person companies enjoy less brand image as compared to private limited company registration. One needs to make proper trade-offs while making these decisions.

Looking for company registration in Gurgaon? Patron Accounting is a accounting firm based in Pune of experienced and qualified professionals offering various services such as Business Registration, Accounting Services, Online GST Registrations, Tax Planning, Stock Audit, GST Return filing Services. Having an experience we always come with plan to lay out a smooth process that is effective and efficient. Owing to large networks across India, we tend to deliver your accounting needs simultaneously at multiple locations.


Read more-Documents required for private limited company registration

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