WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!
Hi, how can I help?
skip to Main Content
Pune +91 - 7030364299 & Mumbai +91 - 7977287760 info@incorpedia.com

Difference between LLP and Private Limited Company

New entrepreneurs can either incorporate a Private Limited Company (PLC) or else register a Limited Liability Partnership (LLP). What will be more beneficial to start a PLC or an LLP following points which can help you understand the difference between the two different legal entities with limited liability.

Sr. No.ParticularsPrivate Limited CompanyLimited Liability Company
1INCORPORATION/ REGISTRATION/ FORMATIONSingle Spiece Form Inc 32, 33 And 34.
Pan And Tan Applied In The Spiece Form And Allotted With The Certificate Of Incorporation
Name Approval In Form 1.
Certificate Of Incorporation In Form 2 And
Llp Agreement To Be Registered In Form 3.
Pan And Tan To Be Applied Seperately With Nsdl After The Certificate Of Incorporation.
2MINIMUM NUMBER OF DIRECTORS/ DESIGNATED PARTNERS22
3MAXIMUM NUMBER OF DIRECTORS/ DESIGNATED PARTNERS/ SHAREHOLDERS15 And Be Increased200 Maximum Number Of Partners
4PARTNERS REMUNERATIONS/ DIRECTORS REMUNERATIONSNo RestrictionsUpper Limit As Per Section 40(B)
On First Rs 3,00,000 Of Book Profit Or In Case Of Loss Rs 1,50,000 Or At The Rate Of 90% Of The Book-Profit, Whichever Is More
On The Balance Of Book Profit At The Rate Of 60%
5MEETINGSAt Least 4 Meeting During A Year And Agm Once A YearNo Such Requirement
6AUDITMandatory Even If There Is No Financial Transactions ConductedAudit Is Applicable Only In Case The Turnover Is More Than Rs. 40 Lakhs Or Contribution Of Partners Is More Than Rs. 25 Lakhs
7COMPLIANCEHigh
Directors Report,
Mandatory Registers,
Board Meetings
Annual Report And
Annual Accounts
Low
Annual Report And
Annual Accounts
8GOVERNING LAWThe Companies Act, 2013The Llp Act, 2008
9FUND RAISINGPreferred Over LlpFunds Can Be Raised However Pvt Ltd Companies Are Preferred
10SUFFIXPrivate Limited Or Pvt. Ltd.Limited Liability Partnership Or Llp
11TAXATION25% Tax + 3% Cess On Tax In Case Of Sme Or Mse With Turnover Less Than 50 Crores (Refer Finance Act 2017)
Or Else 30% + 3% Cess
30% Tax + 3% Cess On Tax
12DIVIDEND DISTRIBUTION TAXApplicable (15% Plus Surcharge And Cess)Not Applicable

Leave a Reply

Your email address will not be published.

Back To Top