Sr. No
|
Conditions
|
LLP
|
Company
|
Partnership
|
1.
|
Registration
|
To be registered with Registrar of LLP under LLP Act 2008
|
To be registered with Registrar of Companies under Companies Act 1956.
|
Registration is optional
|
2
|
Name
|
Name should contain 'Limited Liability Partnership' or 'LLP' as last words
|
Name should contain 'Limited' / 'Private Limited' as last words
|
Any name as per choice
|
3.
|
Legal entity
|
LLP is a separate legal entity registered under LLP Act
|
Company is a separate legal entity registered under Companies Act, 1956
|
Not a separate legal entity
|
4.
|
Formation Cost
|
The cost of Formation is lesser that of formation of Company.
|
The cost of Formation is higher than that of formation of LLP
|
The Cost of Formation is negligible.
|
5.
|
Formation by Foreign Nationals
|
Foreign Nationals alone can not form a LLP.
|
Foreign Nationals alone can form a Company
|
Foreign Nationals can not form Partnership Firm in India.
|
6.
|
Minimum Number of Members
|
Minimum 2 partners
|
Minimum 2 in case of Private Company 7 in case of Public Company.
|
2
|
7.
|
Management Team
|
Minimum 2 Designated partners
|
Minimum 2 / 3 Directors
|
No requirements
|
8.
|
Administration.
|
Designated Partners are responsible for day to day operations and statutory compliances
|
Directors are responsible for day to day operations and statutory compliances
|
Partners are responsible for day to day operations and statutory compliances
|
S. No
|
Conditions
|
LLP
|
Company
|
Partnership
|
9.
|
Remuneration to Managerial Personnel
|
Remuneration to partners will be determined on LLP Agreement
|
Remuneration to Directors of Public Companies are governed by Companies Act
|
The firm can pay remuneration to its partners
|
10.
|
Liability of Partners/ Members
|
Limited to the extent of contribution towards LLP
|
Limited to the amount of share capital agreed to be contributed on each share
|
Partners have unlimited liability
|
11.
|
Capital Contribution
|
Determined by partners as per the LLP agreement.
|
Limited to the unpaid amount of share capital agreed to be contributed
|
Unlimited may extend to their personal assets
|
12.
|
Tax Liability
|
Notification from IT Department awaited
|
Income of Company is Taxed at a Flat rate of 30% Plus surcharge as applicable.
|
Income of Partnership is Taxed at a Flat rate of 30% Plus surcharge as applicable.
|
13.
|
Transfer of ownership Rights
|
Ownership transfer is governed by the LLP Agreement.
|
Ownership is easily transferable by transfer of shares
|
Not transferable.
|
14.
|
Statutory Meetings
|
There is no requirement to hold any meeting
|
Board Meetings and General Meetings are required to be conducted as per Companies Act
|
There is no provision in regard to holding of any meeting
|
15.
|
Maintenance of Statutory Records / Minutes Book
|
Required to maintain books of accounts.
|
Required to maintain books of accounts, statutory registers, minutes etc.
|
Required to maintain books of accounts as Tax laws
|
16.
|
Annual Filing
|
Annual Statement of accounts and Solvency & Annual Return needs to be filed every year.
|
Annual Accounts and Annual Return needs to be filed with the Registrar of Companies
|
No return except Tax returns
|
17.
|
Agreements / Contracts with Partners/Director
|
Partners are free to enter into any contract with LLP
|
There are restrictions for contracts in which directors are interested.
|
Partners are free to enter into any contract partnership
|
S. No
|
Conditions
|
LLP
|
Company
|
Partnership
|
18.
|
Reputation
|
LLP enjoys higher reputation compared to Partnership as it is registered and regulated by LLP Act
|
Due to Stringent Compliances & disclosures under various laws, Companies enjoys high degree of creditworthiness
|
Creditworthiness of firm depends upon goodwill and creditworthiness of its partners
|
19.
|
Dissolution
|
Voluntary or by order of National Company Law Tribunal.
|
Voluntary or by order of National Company Law Tribunal.
|
By agreement, mutual consent, insolvency, certain contingencies, and by court order
|
20
|
Audit
|
Not mandatory for LLPs having turnover less than Rs.40 Lacs or having contribution less than Rs.25 Lacs in any financial year. Mandatory otherwise.
|
Mandatory
|
Not mandatory. Required as per Income Tax Act
|
21
|
Accounting Standards
|
Applicability yet not decided.
|
Applicable
|
Not Applicable
|
22
|
Liability
|
Limited
|
Limited
|
Unlimited
|
23
|
Registration with concerned Departments
|
Mandatorily required to be registered with RoC.
|
Mandatorily required to be registered with RoC.
|
Not mandatory. Advisable
|
24
|
Perpetual Succession
|
Perpetual.
|
Perpetual.
|
Depends upon Partnership Deed.
|
25
|
Common Seal
|
Optional.
|
Mandatorily required.
|
Not required
|
26
|
Obligation for acts of others
|
Partners are not liable for the acts of other Partners.
|
Directors are not liable for the acts of other Directors.
|
Every partner is liable for the acts of other partners and that of the firm.
|
27
|
Corporate Restructuring (Merger/Amalgamation)
|
Available
|
Available
|
Not available
|