Solvency Certificate: Meaning,Procedure and Eligibility
Solvency Certificate is one of the important financial document that is issued by banks and reven...
Trust registration in India
<p>A trust can be understood to be an arrangement wherein a property is handed over to or vested ...
Corporate Tax Rate Cut: Diwali Celebrations Come Early for India Inc.
<p>Government slashes the corporate tax rate for domestic companies from 30% to 22% and for manuf...
Credit Guarantee Scheme for NBFC
The government has rolled out a credit guarantee scheme for NBFC. As per the scheme, the PSU’s ca...
Business Structure in India
A business structure may be defined as an organisation which carries out its business operation w...
Union Budget 2019-20 : Implication on Companies
The Union Budget for the financial year 2019-20 was presented by the finance minister Ms Nirmala ...
Indian Patent and Trademark Office Issues Notice for Corrections
The Indian Patent office has provided an opportunity for registered trademark owners to make any ...
Transborder Reputation In Trademark
Transborder reputation is a well established legal concept where even if the trademark is not reg...
Advertisement Of Trademark Application
When a trademark application gets accepted by the trademark office, it is generally published in ...
Understanding Difference Between Word, Logo and Logo Composite Mark
Trademark represents your business and products, so before registering your mark you should alway...
Pilot 18. Com Can No Longer Take Free Rides: Restrained from using Trademark “Vistara”
Delhi High Court in its recent order has proposed that “Vistara” to be declared a well-known trad...
BharatMatrimony wins Trademark Infringement case Against Shaadi.com
Bharatmatrimony has been granted plea to stop Shadi.com for using its trademark and website URL. ...
Patent Prosecution Highway (PPH) : The Fast Track Examination Procedure
Patent Prosecution Highway (PPH) is an initiative that accelerates the examination procedure of c...
Royal Enfield Sued for Patent Infringement
Royal Enfield, a niche bike manufacturer, is being sued by an Indian company for Infringement of ...
Qualcomm wins over the Patent fight with Apple
Apple has agreed to be in a 6-year license agreement with Qualcomm and pay the required amount to...
Harley Davidson files Patent for Bike Designs
Harley Davidson recently filed designs with the European Union Intellectual Property Office (EUIP...
Apple Patent’s Application hints at Foldable Design
A recent patent application is filed in the United States Patent and Trademark Office (USPTO) whi...
Patent Search: Everything You Need to Know
The patent search involves a search of the patent database so as to determine if there are any si...
Cancellation of GST registration
<p>From 1<sup>st</sup> July 2017, Goods and Service Tax was made effective in India, since then t...
DSC Registration on GST Portal
This article will assist you in understanding the step by step process of registering a digital s...
GST Composition Scheme
The government has launched a composition scheme for businesses that are involved in the unorgani...
Businesses with Turnover over 2 Crore to file GST for FY-18
All the companies with turnover more than Rs. 2 Crore needs to file the audit report for the fina...
Power Companies move to High Court after 12% GST on REC
The Renewal Power Companies have taken this to the Delhi High Court after the government imposed ...
Instamojo leads a new Vision for MSME in General Elections
Instamojo, a leading payment solutions company, has started a campaign named 'IAMMSME' to promote...
Partnership vs LLP vs Private Limited Company
created on 19 May 2016
Partnerships, LLPs and Private Limited Company have a few fundamental differences in the way they are registered, the name approval process, taxations, transferability, annual statutory filings, the filing of annual returns etc. The chart below will give you an overview of how these three types of companies vary and their core differences.
Private Limited Company
Registration of Partnership is optional, it may or may not be registered. This if registered is done under the Partnership Act, 1932.
Limited Liability Partnership is registered with the MCA(Ministry of Corporate Affairs) and is done under the LLP Act, 2008.
A Private Limited Company is registered under the Companies Act, 2013 with the Ministry of Corporate Affairs.
Name Approval of Entity
For a Partnership, there is no need of permission for the approval of the Name. The promoters can directly choose the name, however it is recommended not to take trademarked names.
The Name of the LLP needs approval from the Registrar of Company. Already existing names are not permitted. The Name of the LLP must have an ending with "Limited Liability Partnership" or "LLP"
The Name approval process is similar to an LLP but the Private Limited Company names end with the words "Private Limited Company". It needs to be approved by the RoC.
Legal Status of the Entity
The Partnership firms are not recognized as separate legal entities. The promoters and partners are responsible for the liabilities attached to the Partnership.
A Limited Liability Partnership is a distinct legal entity which is registered under the LLP Act, 2008. In this the partners or members are not responsible for the liabilities and debts of the Company.
A Private Limited Company is also a separate legal entity hence enjoys similar benefits as an LLP. The Directors an shareholders are not answerable for any debts neither are they responsible for the liabilities of the Company.
Liability of the Members
In Partnership the Partners have unlimited Liabilities and are responsible for all the liabilities attached to the firm.
The Partners of an LLP have limited liabilities and it extends only till the amount that they have contributed.
The Shareholders in a Private Limited Company are liable only to their shares, which means it has limited liabilities.
Ownership can be transferred
Ownership can be transferred by way of share transfer.
Number of Members
A Partnership needs to have minimum two person to start off the business and it can extend upto maximum twenty
An LLP needs to have minimum of two persons to start doing business. It can have unlimited members.
Minimum two person is required to start a Private Limited Company. This has restrictions as it can only have a maximum of 200 shareholders /members.
It is not permitted for the foreign nationals to be a partner in a Partnership Firm.
To be an investor or member of an LLP, the foreign nationals need to get prior approval of the Reserve Bank of India.
Foreigners are allowed to invest in a Private Limited Company and it is done under the automated approval route.
The Partnership profits are taxed at 30% in addition to the surcharge and cess as applicable.
LLP profits are also taxed 30% in addition to the surcharge as applicable.
It is same as LLP & Partnership i.e. 30% in addition to the surcharge.
Annual Statutory Meetings
Board Meetings and general Meetings are essential to be conducted by a Private Limited Company.
There is no need to file the Annual Report but the Tax filing (Income Tax Return) must be filed by Partnership.
It is must to file the Annual Statement of Accounts & Solvency along with the Annual Returns and Tax Returns with the Registrar each year.
Private Limited Company must file the Annual Accounts & Annual Return with the Registrar each year along with the Income tax Returns.
Limited Liability Partnership
Rs. 7,999/- only
Private Limited Company
@ Rs. 12,999/- only
Click here to
File Company Application
No Hidden Charges
Track Your Order
LLP vs OPC
LLP (Limited Liability Partnership) VS Partnership
Limited Liability Partnership
Conversion of LLP to Private Limited Company
Partnership / Proprietorship vs. Company
Private Limited Company to LLP
Private Limited Company vs Partnership Firm
Limited Liability Partnership (LLP) vs Private Limited
FAQ on Adding/Removing a Director to a Company
Sign In with Google
Sign In with Facebook