LLP vs OPC
A side-by-side comparison of Limited Liability Partnership and One Person Company — cost, timeline, liability, compliance, taxation, and which one is right for you in 2026.
The short answer
Choose OPC if you're a single founder wanting a company structure. Choose LLP if you have 2+ partners — LLP needs at least two people and suits professional partnerships.
| Criteria | LLP | OPC |
|---|---|---|
| Professional fee (from) | ₹8,999 | ₹9,999 |
| Govt. fees | ₹2,000–₹5,000 | ₹4,000–₹8,000 |
| Timeline | 12–18 working days | 12–15 working days |
| Liability | Limited to contribution | Limited to shareholding |
| People required | 2 designated partners | 1 director + 1 nominee |
| Raise equity funding? | No equity funding (partners only) | No equity funding |
| Compliance burden | Medium — annual return + statement of accounts | Medium — annual filings required |
| Taxation | Flat 30% on profits, no dividend tax | Flat 22–25% corporate tax |
| Credibility | High for professional firms | Higher than proprietorship |
| Conversion | Can convert to Pvt Ltd | Converts to Pvt Ltd above ₹2 Cr turnover |
Limited Liability Partnership
Best for: Professional service firms, consultancies, CA/legal/architecture practices with 2+ partners
Pros
- Flexible profit sharing
- No minimum capital
- Limited liability protection
- Lower compliance than Pvt Ltd — no audit below ₹40L turnover
Cons
- Cannot raise VC equity funding
- Foreign investment restricted in some sectors
- Less brand credibility vs Pvt Ltd
One Person Company
Best for: Solo founders who want limited liability and a formal company without a co-founder
Pros
- Solo founder with limited liability
- Separate legal entity
- Can convert to Pvt Ltd later
- Professional company identity
Cons
- Cannot add shareholders/co-founders
- Turnover capped at ₹2 Cr
- Annual compliance still required
LLP vs OPC — FAQs
What is the main difference between LLP and OPC?
Limited Liability Partnership: Professional service firms, consultancies, CA/legal/architecture practices with 2+ partners. One Person Company: Solo founders who want limited liability and a formal company without a co-founder. Choose OPC if you're a single founder wanting a company structure. Choose LLP if you have 2+ partners — LLP needs at least two people and suits professional partnerships.
Which is cheaper to register — LLP or OPC?
LLP starts at ₹8,999 and OPC starts at ₹9,999 (professional fees, government fees extra at actuals).
Which has lower compliance — LLP or OPC?
LLP compliance is medium — annual return + statement of accounts. OPC compliance is medium — annual filings required.
Can LLP raise funding?
LLP: No equity funding (partners only). OPC: No equity funding.
Still not sure which one to pick?
Take our free 2-minute quiz, or talk to a CA — we'll recommend the right structure for your situation.