Many Entrepreneurs starting a new business are curious about the comparison between a Private Limited Company vs LLP. Both entities offer many similar features required to run a small to large sized business, while also differing starkly on certain aspects. In this article, we decode compare Private Limited Company vs LLP from the viewpoint of an Entrepreneur starting a new business.
|LLP (Limited Liability Partnership)||PVT LTD (Private Limited Company)|
|For the formation of an LLP, minimum of 2 Partners are required. There is no limit to the maximum number of Partners. A body corporate can be a member of an LLP.||The minimum number of shareholder required for a company is 2 and there can be up to 50 shareholders, in case of a private limited company.|
|Steps for Incorporation||Steps for Incorporation|
|For the formation of LLP, firstly you need to apply for Designated Partner Identification Number(DPIN) for the 2 designated partners of LLP and obtain Digital Signature for one of the Partners of the Proposed LLP.||The first step for the incorporation of a company is the selection of a name for the proposed company. Then apply for Directors Identification Number and Digital Signatures.|
|Application for Name Availability & Obtaining the Name for the proposed LLP.||Drafting of Memorandum and Articles of Association.|
|Drafting of LLP Agreement for the LLP and filing of incorporation document consisting of Form 2, 3 and 4 available on llp.gov.in with the registrar of companies.||Stamping, digitally signing and e-filing of- MoA, AoA, E-Form 1, 18 and 32 under Companies Act, 1956, and other documents if any which has been stated in MoA with the Registrar.|
|Obtaining Certificate of Registration of LLP||Obtaining Certificate of Incorporation of LLC|
A Limited Liability Partnership firm is a type of firm which is accepted by various partners. For LLP registration, you can complete the LLP registration by visiting the Online LLP registration portal and complete the process.
Along with that, you can manage your accounts and banking related in queries with the help of EZOTO Software – By Downloading this accounting Software you would be able to manage invoice, accounting, credit, inventory, customers, etc and fulfill all your accounting needs