Why Pvt Ltd Company is more preferred type of company rather than LLP?

Pvt Ltd Company and LLP Both are the most preferred types of small business registration in current time in India But which is the most preferred type and what are the benefits of both pvt ltd company and llp. Let’s have a look on it.

There is one common question every Entrepreneur had while he is going for kick-start his company, and that is what he chooses a Pvt. Ltd Company or a Limited Liability Partnership (LLP)?

There are a lot of challenges and opposite conditions appears while anyone going for a new startup, But success doesn’t comes in easy way.

In this blog post I am going to tell you why the Pvt Ltd Company is more preferred type of company rather than llp in India, what is the registration process of Pvt Ltd Company and llp, what documents are required for pvt ltd company and llp, capital and sharing of Pvt Ltd Company and llp.

What is LLP?

A LLP or Limited Liability Partnership is a type of company where no any partner is liable or responsible for the losses or misconduct by other partner.

What is Pvt Ltd Company?

A private limited company (Pvt Ltd Company) is a type of company where the liability of the owner is limited against their shares.

Discussion Points:

1. Registration Process of Pvt Ltd Company and LLP:

The registration process for both Pvt Ltd Company and llp takes generally 15–20 days, Steps involved in registration process are:

· File Application for Digital Signal Certificate (DSC) — for Both.

· Obtain Directors Identification Number (DIN) — for Pvt Ltd Company.

· Apply for Designated Partner Identification Number (DPIN) — for LLP.

· Name Approval — for both.

· File application for Incorporation — for both.

· File LLP Agreement — for LLP.

2. Capital Involvement:

Yet there is no limit for minimum capital required for both, LLP requires fewer amounts for formation of company rather than a Pvt Ltd Company but Pvt ltd Company offers better returns rather than llp.

3. Share contributions:

Yet a partner contributes the share amount in llp, but the feeling of the stakeholder an share is exclusive in private limited company.

4. Investment Policy:

Private limited company welcomes the investors for investing their money; on the other hand llp declines the investor’s contribution.


Anita Aswal (Company-Registration-India)




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