Here, LegalDelight present its new ppt on the topic Difference Between Company, Limited Liability Partnership and Partnership. under this PPT, a reader would get to know about the difference between above three form of business and get the understanding accordingly while choosing anyone for its business purpose. Here the reader will get benefits and other details for registering different different form of businesses

1. Difference between
Company, LLP &
Partnership

2. S.
No
Particulars Company LLP Partnership
1. Registration Registration of Company
is mandatory under
Company Act, 2013 and
the rules made
thereunder.
Registration of Limited
Liability Partnership is
mandatory under Limited
Liability Partnership Act,
2008.
Registration of Partnership
firm is optional. Though it
is always advisable to get
the same registered under
Indian Partnership Act,
1932.
2. Time of
Constitute
Time normally takes 7-10
days depending upon work
load at Central
Registration Centre under
Ministry of Corporate
Affairs.
Time normally takes 7-10
days depending upon
work load at Central
Registration Centre
under Ministry of
Corporate Affairs.
Registration under Indian
Partnership Act, 1932
normally takes 4-5 days.
3. Regularized
&
Compliance
Management
It is regulated under the
Companies Act, 2013 and
therefore requires
compliance under certain
provisions like Annual
Filing, Board of Directors,
Annual General Meeting
etc.
It is less regulated than
Company. Compliance
are still there but not with
the same magnitude. It is
regulated under Limited
Liability Partnership Act,
2008 and some
compliances under
certain provisions like
Annual Filings & Returns.
It is less regulated than
LLP. There is no major
regular compliances to be
carried out under the
Indian Partnership Act,
1932, only event base
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3. S.
No
Particulars Company LLP Partnership
4. Distinct
Identity &
Liability
Thereof
 Company has distinct
identity from its members.
 As company has distinct
identity, company is liable for
its act.
 Liability of Shareholders is
limited to the extent of their
shareholding in Company.
 LLP has distinct
identity from its
partners.
 Same position as
Company meaning
thereby that partner
are limited only up to
the amount of their
contribution.
 Partnership does not
have distinct identity
from its partners.
 Partners are liable for
business / work
performed under
Partnership.
5. Minimum
Paid up
Capital
Requirement
Earlier there was a minimum
capital required of Rs. 1 lakh in
case of Private Limited
Company and Rs. 5 Lakh in
case of Public Limited
Company. Now the same
condition has been abolished
and removed, now there is no
Minimum Capital requirement.
There is no such
requirement.
There is no such
requirement.
6. Foreign
Direct
Investment
(FDI)
Company is eligible to receive
FDI in terms of RBI Guidelines
and FEMA Provisions.
LLP is eligible to
receive FDI only
through approval route.
Not allowed

4. S.
No
Particulars Company LLP Partnership
7. Minimum
number of
Shareholders
/ Partners
and
Maximum
 Private Limited Company -
Minimum 2 members and
Maximum 200 Members
 Public Limited Company –
Minimum 7 members and
Maximum there is NO limit.
Minimum .2 partners
and Maximum there is
NO Limit
Minimum 2 partners and
Maximum No Limit
8. Foreign
National as
Shareholder /
Partner
Foreign National can become
shareholders as FDI is allowed
is certain sectors.
Foreign National can
be a partner in LLP.
Foreign National cannot
become partner.
9. Initial Public
Offer (IPO)
Public Company can go for
IPO.
Private Company can convert
itself into Public Company and
can go for IPO.
At present, not
allowed.
Not allowed
10. Audit Audit of accounting records
and financial transactions of
the company is compulsory.
The Audit is required
only if the contribution
is above Rs. 25 lacs or
if annual turnover is
more than Rs. 40 lacs.
Under Indian Partnership
Act, 1932 it is optional

5. S.
No
Particulars Company LLP Partnership
11. Tax Audit Audit is applicable in case
turnover is one more One
Crore.
Audit is applicable in
case turnover is one
more One Crore
Audit is applicable in case
turnover is one more One
Crore
12. MAT
(Minimum
Alternate
Tax)
Provisions are applicable. No such provisions are
applicable
No such provisions are
applicable.
13. Distribution
of Profits
Earlier it was “Dividend
distribution Tax @ 16.99% to be
payable by the company. Now
in recent budget it is removed.
No such Provision No such Provision

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