Private limited Vs LLP Company
It is the company registration process for a business gives complete protection for the activities carried forward. Indian government focus for the rules in the company registration based on the Company’s Act 2013 to every type of business. The nature of business and the persons involved in it matters for the selection of best legal form to register. There are many legal forms in India can be able to register for the companies. Among the most selective type is the Private limited company and LLP Company. So people while learning better about the both can help them for the further filtration to decide the legal form to register. So here we are going to discuss about the basic differences in the field of Private limited and LLP Company registration in some factors. Let us have a glance on the factors to compare the legal form as follows:
- Registration process
- Name of the entity
- Legal status of the entity
- Members Liability
- Transfer ability
- Taxation
- Annual statutory meetings
- Annual filings
We can look at each factor for the Private limited and LLP Company registration
Registration Process
- LLP Company
In this form the company registration is being processed with the ministry of Corporate Affairs following the companies Act 2008
- Private limited company
Here the registration of company is the processed as the same with the Ministry of Corporate affairs under the companies Act 2013
Name of the Entity
- LLP Company
Company registrar must approve the company name that is being suggested by the promoter of the company. Obviously the identical names for a company is not allowed also the names that is offensive is not considered. Always after the name approval by the registrar have to keep the name “Limited Liability Company (LLP)” at the end.
- Private limited company
The Procedure for the entity name consideration is same that of LLP company form with a slight difference in the registration that the company name which is selected at the end must have the name “Private limited (Pvt Ltd)”
Legal status of entity
- LLP Company
This company type is considered as a separate concern since it is being registered under the companies Act 2008. The persons involved in the LLP Company are not personally liable to the firm.
- Private limited
Here the company is a separate entity and it is being registered under the companies Act 2013. The directors or the shareholders are not responsible for the personal liability for the company.
Members Liability
- LLP Company
Here the name itself only limited liability for the partners in the company and it is up to the contribution they have done to the LLP
- Private limited
Here also the liability is limited and it is restricted to their level of contribution on share capital in the company
Transfer ability
It is in both form the company ownership can be transferred and private limited company have to do the transfer with their shares.
Taxation
Both the form have 30 percent plus surcharge and the cess is applicable
Annual statutory meetings
For LLP Company the annual statutory meetings is not required whereas in Private Limited Company the board and General meetings are conducted as mandatory
Annual Filings
- LLP Company
Every year LLP Company should submit their annual statements of the accounts and solvency along with that annual returns need to submit at the registrar. Income tax filing is also applied for LLP Company
- Private Limited
Annual statements of accounts and the annual returns is must to submit to the registrar also the Income tax filing is required to submit.
From the above details you will be able to analyse the way of private limited and LLP companies are getting registered in our city. More than that we Corproots have their multiple branches in various cities and among them if you wish to start any of the company in Coimbatore then our relevant services are purely available at anytime. Coimbatore based services includes:
