In case of setting up a company or business, lot of entrepreneurs/businessmen intend to form a private limited company wherever at the same time many businessmen also want to set up limited liability partnership company. They are also curious to know what are the benefits or advantages of come under both entities.

1. DIFFERENCE
BETWEEN LLP AND
PVT LTD COMPANY
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We are going to represent the most comparison of LLP
Company & Private Limited Company in India. You will find all
about of LLP over Pvt Ltd Company going by our agenda slide.
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3. AGENDA
 What is Limited Liability Partnership (LLP)
 Advantages of LLP Company
 What is Private Limited Company
 Advantages of Pvt Ltd Compnay
 Comparison of LLP over Pvt Ltd
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4. By Definition:
A limited liability partnership is a
form of corporate structure where
the partners have limited
liabilities. This means that you as
a partner of your firm will not be
personally responsible for
business debts and obligations.
WHAT IS LIMITED LIABILITY PARTNERSHIP (LLP)
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5. CONTINUATION OF LLP COMPANY
In simpler words
We can say, if your business is sued, your personal assets such as your car
or your house will not be at risk. This is different from a traditional form of
partnership where the partners are personally liable for business debts and
obligations.
Limited Liability Partnership in Companies act 2013 to be set up under
Government route in sectors which 100% FDI have allowed automatic route
and without any conditions.
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6. ADVANTAGES OF LLP COMPANY
▰ Separate Legal Entity
▰ Limited Liability Protection
▰ Tax Advantages
▰ Reduced Compliance
▰ Great Flexibility
▰ Easy to Form
▰ Owning Property
▰ Dual Relationship
▰ Easy Transferable Ownership Businesswindo.com

7. By Definition:
A Private Limited Company
generally called as Private
Company is incorporated under
Companies Act 2013 which has
minimum two members and a
maximum of 200 members. Pvt.
Ltd. Offers limited liability or legal
protection for its Shareholders.
WHAT IS PRIVATE LIMITED COMPANY
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8. CONTINUATION OF PVT LTD COMPANY
So a Private Limited Company is an independently taxed and accountable
business entity, where each shareholder has liability limited to his/her
shareholding, and which is not public as defined by the Companies Act.
Private limited company is the most popular corporate entity amongst
small, medium and large businesses in India due to various advantages.
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9. ADVANTAGES OF PRIVATE LIMITED COMPANY
▰ Ideal for Startups and Growing Business
▰ Easy to Get Funding, Raise Venture Capital Fund
▰ Limited Liability
▰ Continued Existence
▰ Tax Advantages
▰ Greater Credibility
▰ Easy Transferable
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10. COMPANY REGISTRATION NOW BECOMING EASY
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11. COMPARISON OF OF LLP (LIMITED LIABILITY
PARTNERSHIP) OVER PRIVATE LIMITED COMPANY
11
Limited Liability Partnership Private Limited Company Features
It is a separate legal entity It is a separate legal entity Legality
Limited Liability Partnership Act 2008 Companies Act 2013 Governed by
It has to be registered with ROC.
Certificate of Incorporation is issued by
ROC
It has to be registered with ROC.
Certificate of Incorporation and
Certificate of Commencement of
Business is issued by ROC
Registration
Name of a limited liability company end
with the words “LLP” as Limited Liability
Partnership
Name of a private company end with
the words “Private Limited or Pvt. Ltd.”
Company Name

12. COMPARISON OF OF LLP & PVT LTD CONTINUED
12
Limited Liability Partnership Private Limited Company Features
No limit prescribed in the Act. Minimum authorized paid up capital
Rs.1,00,000/-
Capital Contribution
Two designated partners out of which
one director has to be a resident of
India
Two directors out of which one has
to be a resident of India
Minimum numbers of
Directors/Partners
No Minimum 2 Shareholders can be
Body Corporate and Foreign
National also
Minimum number of
Shareholders/Members
No specific limits At least 4 Board Meetings, one in
each quarter & the gap between two
meetings shouldn’t be more than
120 days. AGM to be held within 6
months from closure of the Account
Minimum number of
Meetings including Board
and General Meetings

13. COMPARISON OF OF LLP & PVT LTD CONTINUED
13
Limited Liability Partnership Private Limited Company Features
Annual Statements of Accounts and
Solvency & Annual Return has to filed
with ROC
Annual Accounts and Annual Return
to be filed with ROC
Annual Filings
Required, if the contribution is above
Rs.25 lakh or if annual turnover is
above Rs.40 lakh
Compulsory, irrespective of share
capital and turn over
Audit
Foreign nationals can be partners,
however there are separate RBI
guidelines to be followed
Foreign nationals can be partners,
however there are separate RBI
guidelines to be followed
Foreign Nationals as
Shareholders/Partners
The income is taxed at 30% +
surcharge + cess (surcharge rate will
vary)
The income is taxed at 30% +
surcharge + cess (surcharge rate
will vary)
Taxability

14. COMPARISON OF OF LLP & PVT LTD CONTINUED
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Limited Liability Partnership Private Limited Company Features
Limited Liability Limited Liability Liability
It can’t be converted into a Private
Company/Public Company/OPC
It can be converted into a Public
Company/LLP
Conversion
Less procedural compared to
Company. Voluntary/by Order of
National Company Law Tribunal
Very procedural and time
consuming. Voluntary Winding up
under FTE/ by Order of National
Company Law Tribunal
Dissolution

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