Difference between PVT. Ltd and L.L.P Company
Hemlata Khandelwal / 2021-03-22 08:13:30

You are going to know about "Pvt. Ltd. and LLP" i.e. "Private Limited and Limited Liability Partnerships". A lot of entrepreneurs who start their own business have a question in their mind as to what is the difference between "Private Limited and Limited Liability Partnership". If explained in easy language, there are many similarities between these two. These two units offer many similar features to run a small to large size business, but their different ways can be seen in certain aspects. Today, we will try to explain the differences between the two through this blog.

What is a Limited Liability Partnership (LLP)

The full name of LLP is "Limited Liability Partnerships". Limited Liability Partnership under Government route i.e. "Limited Liability Partnerships" are for those areas in which 100% FDI is allowed without any condition.

If a startup founder is considering for this field, he must note a few things:


  • The role of your organization has to be defined well.
  • One has to manage the right place for his business.
  • Contact a good lawyer and gain clarity on potential structural issues. Because licensing and other regulatory issues can affect your business.
  • It is mandatory for any startup founder to agree on intellectual property and agree with others and it should also ensure that you are safe or not.
  • Some methods should also be found through which you can easily change your business structure and also reduce some taxes.

What is a private limited Company

Any type of joint-stock company can be a Pvt. Ltd. company. This is a type of association that the people of the company prefer to build on their own, in which most of those people are present, all of which have a minimum paid-up capital of the company of Rupees on lakh. It is required more than one (1) person to start a Pvt. Ltd. company and in such a company max two hundred employees can work.

It has not allowed selling its shares in Pvt. Ltd. to anyone. And the companies, in which all these properties are present, have the right to set up private-limited at the end of their name.

Difference between Pvt. Ltd. and LLP 

What is the differnce betwweb Pvt ltd and LLP?

  • A minimum of two partners is required to start an LLP and it can take a max number of members. On the other hand, for the formation of a private limited, it is mandatory to have at least 2 and a maximum of 50 shareholders.
  • For the formulation of LLP, one has to first apply for Designated Partner Identification Number (DPIN) and these must be at least two. In this, the applicator has to get a digital (d) signature(s) for anyone. On the other hand, to include a company in a private limited, the first step is to select the name for the proposed company and then apply for Director Identification Number and Digital Signatures.
  • In Limited liability Partnership, the holder of company registration in India has to send an application for the company name, through this you can give your choice name to your company and on the other hand, for private LTD, It has to be drafted the articles of association (AOA) and MOA.
  • LLP requires drafting an agreement of LLP and filing of registration documents with Forms 2, 3, and 4. It is available with the company's registrar on the official website. Whereas private limited has to complete stamping, digital signature, and e-filing and other documents of MoA, AoA, E-Form 1, 18, and 32 under the Companies Act, 1956.
  • Obtaining the registration certificate for LLP is the last step and obtaining the certificate of incorporation of LLC in private limited is the last step.

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