LLP or Pvt.Ltd.Co.

If a partner wants to transfer his/her ownership rights then he/she has to obtain the consent of all the partners, which generally not an easy task.

There are many partners involved in the business, amongst whom the risk can be diversified .
If you are a start-up or company who is looking to raise funds from the angel investors or the venture capitalist, then you cannot register a LLP because LLP does not support funding. The prime reason behind this disadvantage is that the ownership of LLP is classified as interest and not as shares and cannot be offered to investors in return for the required funds.

Only a limited company offers this advantage of raising funds in India and hence, if you are a start-up and willing to raise funds, then you need to register a private limited company instead of LLP.

https://www.caclubindia.com/experts/difference-between-company-llp-544625.asp

 

a. Easy formation process compared to company formation.

b. No DDT.

c. Partners will be having management control.

d. Agreements can be modified depending upon the requirement ( with the concent of partners ).

e. Comparably easy winding up procedures.

you explained about advantages of llp
but query is related to disadvantages @ rakesh joshi

I think company will have more demerits than being an LLP... thats why... 😉 If not relevent then kindly ignore my points..

hi
you can refer to my blog for brief on advantage and disadvantage
https://idealconsultax.blogspot.com/2018/06/starting-new-business-whether-to-form.H T M L

can sections 40(b), 78(1), 167C of Income tax act plays a role in putting pvt ltd co. above LLP?
40(b)(v) disallowance of remm to partners above prescribed book profit hence taxing at 30%
78(1) firm cannot c/f losses of retired or deceased partner
167C override entire LLP act to recovery tax intt penalty ....