LLP Registration Online

LLP vs Private Limited Company: Which is the Best For You?

Online Legal India LogoBy Online Legal India Published On 04 Jan 2022 Updated On 20 Sep 2022 Category Company Registration

Company registration has gained significant importance in recent times with more and more individuals opting to get their business registered. Just like any other task, company registration also has several models of business structure that one can choose from. The most prominent ones are the Private Limited Company registration and Limited Liability Partnership Registration in India.

Private Limited Companies and fast LLP Registration Services In India provide several benefits that can draw the individual towards getting the companies registered.  It is important for businesses to know the pros and cons of every model of business before getting themselves registered and running their business in India.

What are LLP and PLC?

A Private Limited Company is one that is privately held by small businesses. The members of Private limited Company are provided with limited Liability in regards to the shares they hold. The shares for the same can not be traded publicly and can only be owned by internal members.

An LLP company registration on the other hand is one that is held by a minimum of two members and is open to inclusions. The Model provides limited liabilities just like private Limited companies to the members.

What are the differences between an LLP and a Private Limited Company?

LLP registration is very new in comparison to the Private Limited Companies in India. There are certain differences that distinguish them apart. They are:

  • Different Requirements: The PLC requires a minimum of two members and directors and shareholders and a maximum of fifteen members, LLP company registration on the other hand needs just two partners and designated partners for its formation. Even the cost of incorporating an LLP is comparatively less as compared to the Private Limited Company. 

  • The Difference in Naming: The incorporation of the Private limited company requires the business to have the term ‘Private’ in the name while for an LLP one needs to use the term Limited Liability Partnership at the end of the name.  

  • The Difference in Tax Structure: Private limited companies pay tax on the earnings of the company however Limited Liability Partnership pays the income tax and alternate minimum tax.

  • Different Charter Documents: Private Limited Company needs the Memorandum of Association and Article of Association, while the LLP registration online needs an LLP agreement. 

  • Annual Meetings: Private Limited Companies need to conduct board and general meetings at a prescribed time, while no such compulsions are there for a Limited Liability Partnership.

  • Share Transfer: Private Limited Company provides easy transfer of shares to another shareholder while limited Liability Partnership transfers of shares are governed by the LLP agreement.

  • Voting Rights: Private Limited Company voting rights are decided on the basis of shares a shareholder holds while Limited Liability partnership voting rights are decided as mentioned in the LLP agreement.


The number of company registrations has gone up significantly and has led to confusion regarding which model to choose from. Thus having an idea about the business models can contribute to decision-making that can benefit an individual. Thus the need to know about the different forms of company registration can be of huge help to individuals wanting to get their companies registered. 


Read more

Share With :