Compare LLP and Private Limited Company
1.Registration compare LLP and Private limited Company
Most of Starts up starting new business want to know difference between LLP Registration and Private limited Company. Both registrations comes under Ministry of Corporate Affairs. Pvt Ltd and LLP offers may features. For Registration purpose both need minimum 2 persons and out of which 1 must India Resident. As Compared to LLP Private Limited offers more flexibility and which is more popular for attracting bankers and investors from Startups Point of view. On average both take 7-15 working days for registration. The process is complete online and no need to visit any department.
| S.NO. | Particulars | Private Limited | LLP |
| 1 | Minimum No of persons | 2 | 2 |
| 2 | Minimum no of Indian Partner | 1 | 1 |
| 3 | Flexibility to make changes | More | Limited |
| 4 | Recognition | More Popular | Less Popular |
| 5 | Duration of registration | appx. 7-15 days | appx. 7-15 days |
| 6 | Fees For Registration (appx. ) | INR 4500/- | INR 4000/- |
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2.Incorporation Procedure Compare LLP vs Private limited Company
The LLP Registration procedure and Private Limited Procedure is online. Apart from some of legal documents , Content etc. rest is similar.1 Apply DSC for Partners/director of company. 2 Name of LLP or Company should be unique. Apply for Name reservation on MCA Site. 3. File incorporation documents such as Address proof , Photo id proof of partners/directors , business address proofs. Etc. Company registration is done though Spice form. LLP Registration is done through FiLLiP from. Once registration is approved you will get certificate PDF format.
| Step | Particulars | Private Limited | Duration |
| 1 | Name Reservation | Apply for unique name for Company for Indian Government | Apply for unique name for Company for Indian Government |
| 2 | Registration | Fill Spice from it contains details of Directors , Nature of Business , Shareholding etc. | Fill FiLLip from it contains details of Partners , Nature of Business , LLP Address etc. |
| 3 | File LLP Deed | NA | Upload LLP Partnership Deed |
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3. Income Taxation Compare LLP and Private Limited Company
For New Private Limited companies taxation is lower as compared to Limited Liability Partnership. For New Companies having turnover below 250 Crore Income Tax rate is 25%. However there is dividend distribution tax and MAT Tax is applicable on company. However LLP taxation have two taxes one is Income Tax and second is MAT Tax.
| S.NO. | Particulars | Private Limited | LLP |
| 1 | Income Tax Rates ( appx ) ( on Profit ) | 25% / 30 % | 30% |
| 2 | MAT Tax | Yes | Yes |
| 3 | Dividend Distribution Tax | Yes | No. |
| 2 | ITR Filing Due Dates | 30 September | 31 July ( if Non Audit Case ) |
| 30 Sept ( if Audit Case ) | |||
| 3 | DSC For ITR Filing | Yes | Yes |
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4.Annual Compliances Difference LLP and Private Limited Company
Major difference between LLP Annual Filing and Private Limited is annual compliance. Both need to do annual online compliance’s. Where LLP need to file form 11 and Form 8. Where as Company need to file AOC 4 , MGT 7 and ADT 1 form. For non compliance’s per day late fees of Rs. 100/- is applicable.
| S.NO. | Particulars | Private Limited | Due Date | LLP | Due Date |
| 1 | Annual Filing | AOC 4 | 30 th October | Form 11 | 30th May |
| MGT 7 | 28th November | Form 8 | 30 October | ||
| ADT 1 | 13th October | – | – |
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5. FDI Provisions in LLP vs Private limited Company
Under Automatic route Foreign Direct Invest is permitted under LLP operation in sectors/activities. An LLP receiving FDI as capital shall report within 30 days of receipt of funds in FORM FDI-LLP. This should be submitted thought authorised dealer banker to Reserve Bank of India.
FDI under Private Limited company allowed under automated route or prior approval route. Various instruments can be used for FDI of Private Limited Company.
| S.NO. | Particulars | Private Limited | LLP |
| 1 | Foreign Nationals as shareholder / Partner | Yes | Yes |
| 2 | Foreign Investment allowed | Yes | Yes |
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6. Conversion Provisions LLP vs Private limited Company
with changing business requirement business also need to change there status. At some point for business is become crucial to change status. It need to be noted that LLP Act 2008 does not have provision for Conversion of LLP into Private Limited Company. Where as Conversion of Private Limited to Limited Partnership Firm is covered under Section 366 of Companies Act 2013. With in 30 day of filing registrar shall give decision about Conversion of Pvt Company to LLP.
| S.NO. | Particulars | Private Limited | LLP |
| 1 | Conversion | Can be converted to LLP | Cannot be converted into a company |
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