Sub-Comparison of Private Limited Company and LLP
Both the Private Limited Company and LLP (Limited Liability Partnership) are corporate forms of business structures, yet there is difference between the two. The company form of structure is older but the LLP is comparatively a modern structure introduced in the year 2008 to provide more flexibility to entrepreneurs. An LLP is a hybrid form having features of a company and partnership.
A brief comparison between Private Limited Company and Limited Liability Partnership is given below:
| Particulars | Private Limited Company | LLP |
| Regulation | Companies Act, 2013 | LLP Act, 2008 |
| Name suffix | Pvt Ltd/Private Limited | LLP/Limited Liability Partnership |
| Liability | Limited | Limited |
| Entity | Separate Legal Entity | Separate Legal Entity |
| Ownership | Shareholders | Partners |
| Capital | Share Capital | Partner’s Contribution |
| Management | Directors | Partners and Designated Partners |
| Bank Funding | Possible | Possible |
| Minimum Members/Partners | Two | Two |
| MCA Compliances | More | Comparatively lesser |
| Suitable | For more capital intensive business. | Comparatively for less capital intensive business. |
| Brand | Good visibility | Good visibility |
Summary
Both the private limited company and limited liability partnership are corporate business structure, but the choice of a particular form of business depends upon various factors.
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(Republished with amendments)
