Harsh Yadav

Both Limited Liability Partnerships (LLP) and Private Limited Companies (Pvt Ltd) are popular business structures in India. Below is a detailed comparison highlighting their key features, advantages, disadvantages, and differences: 1. Features Private Limited Company (Pvt Ltd) Limited Liability Partnership (LLP) 2. Advantages and Disadvantages Advantages of Pvt Ltd Company Disadvantages of Pvt Ltd Company Advantages of LLP Disadvantages of LLP 3. Key Differences Aspect Pvt Ltd Company LLP Ownership Shareholders own, directors manage Partners own and manage Formation Document MOA & AOA (public documents) LLP Agreement (not public) Registration Process Form SPICe+ Form FiLLiP Compliance AGM and board meetings mandatory No AGM or board meetings required Audit Requirements Statutory audit mandatory Statutory audit required only if turnover > ₹40 lakhs Funding Can raise funds through shares or loans Limited to loans and partner contributions FDI Policy FDI allowed under automatic and approval routes FDI allowed with prior approval Taxation 22%-30% (depending on turnover) Flat 30%, surcharge above ₹1 crore income 4. Choosing the Right Structure Conclusion Both LLPs and Pvt Ltd companies have their pros and cons. The decision to choose between the two depends on the nature, scale, and funding needs of the business. Consulting a professional or legal advisor is recommended to understand specific requirements and implications.