Quick Answer: Which Is Better OPC Or LLP?

Is it good to work in LLP Company?

In case of LLP, working Partners of LLP may get the return in form of remuneration, which is allowable up to certain limit as prescribed under the Income Tax Act.

Further, the share of profit as per the ratio decided in the LLP Agreement can be provided along with the interest levied the on capital invested in the LLP..

Can LLP have directors?

Yes, just like Company, LLP is a body corporate having a separate legal entity and LLP can have its own internal management structure with Designated Partner (DP) plays role similar to the management or board of the company. … CMD i.e. Chief Managing Director is a designation given to the head of management in companies.

What is the difference between OPC and PLC?

PLC is a slightly modified version of portland cement that improves both the environmental footprint and potentially the basic performance of concrete. … While ordinary portland cement (OPC) may contain up to 5% limestone, PLC contains between 5% and 15% limestone.

Can an LLP have employees?

So, yes a salaried person can become a partner in LLP. … You should also go through the LLP agreement before becoming a member whether there is a provision which allows the partner to be employed anywhere else also. And the remaining partners should have no objection in it.

Can we take loan in OPC?

Another advantage of an OPC is the ease of getting loans and perpetuity. “OPCs provide perpetual succession and limited liability to businesses. … Options you can avail include taking a personal loan, taking loan against gold or securities or getting a credit card.

Can OPC raise funds?

It is a company is a private company, OPC can raise funds through venture capital, financial institutions, angel investors, etc. An OPC can raise funds thus graduating itself to a private limited company.

Why is LLP better than company?

It offers limited liability, offers tax advantages, can accommodate an unlimited number of partners, and is credible in that it is registered with the Ministry of Corporate Affairs (MCA). At the same time, it has fewer compliances than a private limited company and is also significantly cheaper to start and maintain.

Can OPC have employees?

Since an OPC can have only one shareholder, there can be no sweat equity shares or ESOPs to incentivize employees. ESOPs can only be implemented if OPC converts into a private or public limited company.

Is OPC a small company?

In accordance with the section 2(62) of Companies Act, 2013 a one-person company means a company that has only one person as to its member. To be brief, there can be only one shareholder in a One Person Company….Board Report of OPC And Small Company- What you should know.S. No.ParticularsNo. of Directors2.One Person CompanyOne director of the Company1 more row•Sep 10, 2019

Is audit compulsory for OPC?

OPC is mandatorily required to get its books of accounts audited from a Chartered Accountant, as by any other limited company. However, provision relating to rotation of auditor is not applicable to OPC.

What are the disadvantages of LLP?

Disadvantages of an LLPPublic disclosure is the main disadvantage of an LLP. … Income is personal income and is taxed accordingly. … Profit can not be retained in the same way as a company limited by shares. … An LLP must have at least two members. … Residential addresses were historically recorded at Companies House.

Can OPC be converted into LLP?

The One person Company cannot be converted directly into the Limited Liability Partnership Form. Because an OPC company has only 1 member. Likewise, in case of LLP registration it should have at least 2 persons who shall on conversion and they become partners of LLP. So direct conversion of OPC to LLP is impossible.

Can LLP get funding?

As needed with Loan agreement LLP can accept/ raise Funds from Partners as Loan. LLP is an legal entity and it is distant from the partners and it can accept loan from partners. Making such fund raising transaction transparent with other partners , LLP and partner can execute Loan from Partner in LLP agreement.

Can LLP buy property?

LLP is a body corporate and a legal entity separate from its partners. It has perpetual succession. Thus, an LLP is capable, in its own name, of acquiring, owning, holding, disposing of property, whether movable, immovable, tangible or intangible.

What are the benefits of OPC?

Benefits of One Person Company: –Independent Existence: … Limited Liability: … Separate Property: … Transferability of Shares: … Tax Flexibility and Savings: … Complete Control of the Company with the Single Owner: … Legal Status and Social Recognition for Your Business: