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Features
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Company
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Partnership firm
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LLP
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Registration
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Compulsory registration required with the ROC. Certificate of Incorporation is conclusive evidence.
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Not compulsory. Unregistered Partnership Firm will not have the ability to sue.
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Compulsory registration required with the ROC
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Name
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Name of a public company to end with the word “limited” and a private company with the words “private limited”
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No guidelines.
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Name to end with “LLP”” Limited Liability Partnership”
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Capital contribution
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Private company should have a minimum paid up capital of Rs. 1 lakh and Rs.5 lakhs for a public company
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Not specified
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Not specified
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Legal entity status
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Is a separate legal entity
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Not a separate legal entity
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Is a separate legal entity
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Liability
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Limited to the extent of unpaid capital.
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Unlimited, can extend to the personal assets of the partners
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Limited to the extent of the contribution to the LLP.
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No. of shareholders / Partners
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Minimum of 2. In a private company, maximum of 50 shareholders
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2- 20 partners
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Minimum of 2. No maximum.
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Foreign Nationals as shareholder / Partner
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Foreign nationals can be shareholders.
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Foreign nationals cannot form partnership firm.
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Foreign nationals can be partners.
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Taxability
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The income is taxed at 30% + surcharge+cess
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The income is taxed at 30% + surcharge+cess
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Not yet notified.
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Meetings
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Quarterly Board of Directors meeting, annual shareholding meeting is mandatory
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Not required
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Not required.
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Annual Return
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Annual Accounts and Annual Return to be filed with ROC
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No returns to be filed with the Registrar of Firms
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Annual statement of accounts and solvency & Annual Return has to be filed with ROC
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Audit
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Compulsory, irrespective of share capital and turnover
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Compulsory
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Required, if the contribution is above Rs.25 lakhs or if annual turnover is above Rs. 40 lakhs.
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How do the bankers view
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High creditworthiness, due to stringent compliances and disclosures required
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Creditworthiness depends on goodwill and credit worthiness of the partners
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Perception is higher compared to that of a partnership but lesser than a company.
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Dissolution
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Very procedural. Voluntary or by Order of National Company Law Tribunal
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By agreement of the partners, insolvency or by Court Order
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Less procedural compared to company. Voluntary or by Order of National Company Law Tribunal
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Whistle blowing
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No such provision
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No such provision
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Protection provided to employees and partners who provide useful information during the investigation process.
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