Cost of running a llp vs pvt ltd company

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Snehal s88

Analyst

31 Points Posted on 19 January 2015

I have been reading up benefits/ limitations of LLP structure vs Pvt Ltd. Can someone please tell me the running costs associated with the two? For example, what are the audit costs, compliance costs, filing charges, book keeping charges etc?

Since we are just starting off, we dont expect to make too much revenue to begin with. We were contemplating starting a private ltd with capital of 1 lakh - have received quotation of close to 22K (4 directors) for registering a pvt ltd company vs 16K for LLP. But we were more concerned about the annual charges. I know that it depends from auditor to auditor but lets say what would be the minimum charges for the two structures on an on going basis considering we are doing small business with limited capital.

Thanks.

Replies (2)

CS MOHIT SALUJA

PRACTICING CS Jalandhar 9914558709

4543 Points Posted on 20 January 2015

The cost of running LLP is same a running a prop. firm or partnership firm. The only difference will be of filing annual return and balance sheet with ROC which will be just 1000-2000 EVERY YEAR.

Snehal s88

Analyst

31 Points Posted on 20 January 2015

Thanks.. but what about audit costs? LLP only to be audited above certain turnover right?

Also - how easy is transferrability of capital in and out for the two structures? Like if we start with a capital of lets say 1 Lakh.. then increase to 2 lakh and then again withdraw some amount? Is it simpler (or possible) to do that in LLP?