Llp vs Pvt – The processes for Private Limited Company and LLP registration are straightforward and somewhat identical to one another. In the establishment of these businesses, we have mentioned important steps in the following article with detailed registration procedures.
Llp vs Pvt ltd (Comparison)
The Pvt ltd. corporation varies from the LLP. Let’s talk about a deeper understanding here.
|Particulars||Pvt Ltd Co.||Limited Liability Partnership (LLP)|
|Law Applicable||Companies Act 2013||Limited Liability Partnership Act, 2008|
|Members Required||Maximum 2Minimum 200||Minimum 2Maximum no limit|
|Directors required||Minimum 2Maximum 15||2 designated partnersMaximum not applicable|
|Board meeting||Minimum 4 board meetings to be held each year. (within 120 days of previous board meeting)||Not necessary|
|Statutory Audit||Mandatory||Not compulsory unless partner’s contribution exceeds 25 lakhs or annual turnover exceeds 40 lakhs|
|Suitable to which type||Businesses having turnover, entrepreneurs who need external funding.||Startups, Businesses, trade, manufacturers, etc.|
|Company Name||Should end with Pvt. Ltd.||Should end with LLP.|
|Time to incorporate company||Normally 4-7 working days||Normally 3-5 working days.|
Although in a scenario there is more than one individual who wants to start a company with limited liability than the Limited Liability Partnership is really for you.