When starting a business you may have to choose between an LLP or a private limited company structure.  Though both share common features like perpetual succession, limited liability etc, there are differences between the two that you must know about before you finalize on any of the ownership structure. Below, we look at four different types.

#1.Number of Members

A private limited company requires at least two members in order to be registered – two shareholders and two directors. The maximum number of directors allowed is 15, with shareholders limited to 200. When it comes to LLPs, two partners are required to register it, but it can add in as many partners as it wants. As such, LLPs are more suitable for small ventures which may collect funds from numerous people and may wish to give them a share of the business.  

#2.Registration Process and Cost

While the private limited companies are registered under the Companies Act 2013, the LLPs are registered under the Limited Liability Partnership Act 2008.  A company requires a Director Identification Number (DIN) to complete the process of registration while an LLP requires a Designated Partner Identification Number (DPIN). And when it comes to cost, registering an LLP obviously is cheaper than a private company, since the former is essentially targeted at small businesses. Other than these differences, most of the other registration processes of both types of businesses are same, including obtaining DSC, name approval from MCA etc. And if you want to make the LLP registration process easier and faster, you can use the registration services for Limited Liability Partnership by Quickcompany.in.