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.

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.

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.

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.

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.

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.