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.
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.
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.
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.
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