S. No. | Factors of comparison | Private limited company | Limited liability partnership |
1 | Minimum Requirement | Directors – 2 | Designated Partners – 2 |
2 | Maximum number of members | 200 | None |
3 | Requirements for compliance | Annual return filling, board meetings and general meetings | Annual return filling and Statement of Account & Solvency. |
4 | Audit | Compulsory | Only if contribution more than Rs. 25 lakhs or turnover exceeds Rs. 40 Lakhs |
5 | Cost of Formation | HIGH | LOW |
6 | Conversion | Can be converted to LLP | Cannot be converted into a company |
7 | Procedure | Obtain DSC (Digital Signature Certificate) Obtain DIN (Directors Identification Number) Name Approval Filing for Incorporation | Obtain DSC (Digital Signature Certificate) Obtain DPIN (Designated Partner Identification Number) Name Approval Filing for Incorporation File LLP Agreement |
8 | Time for registration | 15-20 days | 10-15 days |
9 | Dividend distribution tax | Apply | Not apply |
10 | Minimum Capital | No minimum requirement | No minimum requirement |
11 | Regulator | Registrar of Companies | Registrar of Companies |
12 | Compliance Requirements | Annual Return Filing ,Board Meetings & General Meetings | Annual Return Filing |
13 | Taxation | Taxed at 30% | Taxed at 30% |
14 | Credibility | High | Medium |
15 | Investor Preference | High | Medium |
16 | Statutory Audit | Compulsory | If Contribution > Rs 25lacs or, Turnover > Rs. 40lacs |
17 | Conversion | Can be converted into LLP | Cannot be directly converted into a Private Limited Company |
18 | Procedure | Obtain DSC (Digital Signature Certificate), | Obtain DSC (Digital Signature Certificate), Obtain DPIN (Designated Partner Identification Number),Name Approval, Filing for Incorporation, File LLP Agreement, PAN, TAN Applications |
