Which is better LLP or private limited company ? - MNC Filings
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Which is better LLP or private limited company ?

Every Startup have dilemma which company type he/she  should be starting , let discuss one-by-one

Easy to incorporate company

Register process

Days to register

Cost of starting company

Document need

Make investment

Features

Compliance

Taxation

Penality

llp vs Pvt.ltd which is better
llp vs Pvt.ltd

Easy to incorporate company

Limited liability Partnership and Private limited company both are easy to start , in llp you need minimum two designated partners , as in Pvt.ltd  company you need two directors . director & shareholder can be same person

Registration Process

Llp and Pvt.ltd  both have nearly same process for registering mainly differ in document and Requirement  in case of private limited company first filling of Name approval form then Spice Form-32 with Pan & Tan,Memorandum of Association & Article of Association need to drafts,with necessary documents,in the event of limited liability partnership Name approval form then  FiLLiP for incorporation of company Plus mandatory documents

Cost of starting company

Llp and Pvt.ltd both can be started under 1 lakh investment there is no minimum share capital  requested by government,on this note llp share capital can be decided by partners

Document Required

Private limited Company

    • Two Colour Photograph of each Director
    • Self attested copy of Pan card & Address Proof
    • Signature on Subscriber sheet of MOA & AOA
  • Signature on Digital Signature Certificate (DSC) Form

Limited liability Company

    • Colour Photograph for each Designated Partner
    • Pan card
    • Address Proof
    • Signature on Digital Signature Form
  • Signature on Subscriber Sheet & Consent Statement

Investment

A private limited company have better advantage then liability partnership or One person company of getting investment from external sources ,it also get privilege of getting Debentures from secured & unsecured sources, external source includes Banks and Large financial corporation .

Days to Register

For Private limited company and limited liability company is almost same is there is difference typically time to register for llp and private limited company take only 15 working days    

Features

private limited company stands between partnership and widely owned public company.

LLP comprises principle of both ‘ a corporate structure ‘as well as ‘a partnership firm structure

Annual Compliance

In case of llp company need to make some annual compliance with MCA , Income tax department and other concerned investors and authorities whether llp’s Partners doing business or not.LLP has to maintain books of account which they have to file every year

Private limited company have to file Mca annual come back every year

Taxation

Private limited Company in india should file annual return from sixty days of annual general meeting ,in case annual return filed by listed company or an organization having invested paid share capital more than one crore the annual come back should be certified by an organization secretary in wake of form  No. MGT 8.

For LLP Company annual return needed to be filled within 60 days  closure of its financial year An LLP has to close its financial year on every 31st March. So, the Annual Return is to be filed on or before 30th May every year.

Penalties

There is no upper limit in llp penalties,it goes increasing during non -compliance

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