PRIVATE LIMITED COMPANY VS
LIMITED LIABILITY PARTNERSHIP
| S.NO |
BASIS OF DIFFERENCE |
PRIVATE LIMITED COMPNAY |
LIMIMTED LIABILITY PARTNERSHIP |
| 1 |
ACT |
The Companies ACT 2013 |
Limited Liability Partnership ACT 2008 |
| 2 |
OWNERSHIP |
Owned by the shareholders |
Owned and managed by the partners |
| 3 |
COMPLIANCES |
More regulatory compliance is required, including filing of
annual returns, maintaining statutory registers, conducting
annual audits, etc. |
LLPs have fewer compliance requirements compared to private
limited companies. However, LLPs are still required to file
annual returns and maintain certain statutory registers.
|
| 4 |
TAXATION |
Subject to corporate tax rates. Also, dividends distributed
to shareholders are taxed in their hands. |
Taxed as a partnership, meaning the income is taxed in the
hands of the partners. There is no dividend distribution tax
in llps. |
| 5 |
MEMBERS |
Min. – 2 members Max. – 200 members |
Min. – 2 partners No max. Numbers |
| 6 |
FUND RAISING |
Pvt. Ltd. can raise funds from Venture Capitalists (VCs) or
angel investors |
LLPs cannot raise funds from Venture Capitalists (VCs) or
angel investors |
| 7 |
DIRECTORS |
Min. 2 directors Max. 15 directors |
No directors required in the LLP. |
| 8 |
PROFIT SHARING |
As per the number of shares held |
As mentioned in LLP Agreement. |
LIMITED LIABILITY PARTNERSHIP VS
PARTNERSHIP FIRM
| S.NO |
BASIS OF DIFFERENCE |
LIMIMTED LIABILITY PARTNERSHIP |
PARTNERSHIP FIRM |
| 1 |
ACT |
Limited Liability Partnership ACT 2008 |
Iindian Partnership ACT 1932 |
| 2 |
CREATION |
Created by Law |
Created by contract |
| 3 |
COMPLIANCE |
LLP must file its annual financial statement and statement
of solvency to ROC every year. |
A partnership deed need not to do any annual return with
ROC. |
| 4 |
SEPERATRE LEGAL ENTITY |
LLP has a separate legal entity. |
It does not have separate legal entity. |
| 5 |
MAX NUMBER OF PARTNERS |
No Limit |
Max 100 partners |
| 6 |
ASSETS OF OWNERSHIP |
LLP has the ownership of the asset. No partners owns the
assets. |
Partners have the joint ownership on the assets of the firm.
|
| 7 |
COMMON SEAL |
LLP has the common seal which denoted the signatures of the
LLP. |
There is no concept of the common seal. Authorized partner
has to sign the documents. |
| 8 |
DISSOLUTION |
An LLP can be dissolved voluntarily or by order of the
National Company Law Tribunal (NCLT) |
A partnership firm can be dissolved by an agreement between
partners, court order, mutual consent of partners, etc. |
ONE PERSON COMPANY VS SOLE
PROPREITORSHIP
| S.NO |
BASIS OF DIFFERENCE |
ONE PERSION COMPANY |
SOLE PROPREITORSHIP |
| 1 |
ACT |
The Companies ACT 2013 |
NO Specific Act |
| 2 |
DIRECTOR |
Min. 1 Director |
No director required |
| 3 |
SEPARATE LEGAL ENTITY |
Has separate legal entity |
No separate legal entity |
| 4 |
LIABILITY |
Has Unlimited Liability |
Has Limited Liability |
| 5 |
SHARE TRANSFER |
Can be transferred to nominee |
Cannot be transferred |
| 6 |
ANNUAL FILING |
All filings as per Companies Act 2013 |
Only income tax return |
| 7 |
NOMINEE |
Minimum one nominee. |
Does not require any nominee. |
| 8 |
TAXATION |
30% of profits plus cess and surcharge |
As per individual tax slab. |
| 9 |
FOREIGN OWNERSHIP |
Either of the Director or Nominee can be the
foreign
owner but not both |
Not allowed |
PUBLIC LIMITED VS PRIVATE
LIMITED
| S.NO |
BASIS OF DIFFERENCE |
PRIVATE LIMITED COMPANY |
PUBLIC LIMITED COMPNAY |
| 1 |
MEANING |
A private company is a
closely held company that
does not have its shares
listed on any stock
exchange and cannot be
openly traded. |
A public limited company is
a joint stock company, that
is not a private company,
and the shares of which are
listed on a stock exchange. |
| 2 |
OWNERSHIP |
Owned by the shareholders |
Owned by the outside public
and shareholders both |
| 3 |
USE OF SUFFIX |
It must use word “Private
Limited” after its name. |
It must use word “Limited”
after its name. |
| 4 |
DIRECTORS |
Min.-2 directors |
Min.-3 directors |
| 5 |
MEMBERS |
Min.-2 members
Max.-200 members |
Min.-7 members
Max.-no limit |
| 6 |
FUND RAISING |
Pvt. Ltd. can raise funds
from Venture Capitalists
(VCs) or angel investors |
Public limited company can
raise funds from the public
by issuing prospectus. |
| 7 |
AUTHORIZED CAPITAL |
No minimum capital is
required |
Minimum 1 Lakh capital is
required |
| 8 |
PAID-UP CAPITAL |
Min. 1 lakh |
Min. 5 lakh |
| 9 |
SHARE TRANSFER |
Often restricted and require
approval from existing
shareholders |
Freely transferable |
PRIVATE LIMITED COMPANY VS ONE
PERSON COMPANY
| S.NO |
BASIS OF DIFFERENCE |
PRIVATE LIMITED COMPANY |
ONE PERSON COMPNAY |
| 1 |
SHAREHOLDING |
One person cannot hold
100% shareholding |
100% shareholding is of single person. |
| 2 |
SHAREHOLDING |
Owned by the shareholders |
One owner |
| 3 |
MIN. SHARE CAPITAL |
Not required |
No min. share capital required
but if capital exceeds 50 lakhs
then it will be converted to Pvt. Ltd. |
| 4 |
COMPLIANCE REQUIREMENT |
Annual return fillings, board
meetings, and general
meetings |
Only annual returns |
| 5 |
MEMBERS |
Min.-2 members
Max.-200 members |
1 director and 1 nominee |
| 6 |
SHARE TRANSFERABILITY |
Can be done easily |
Only after altering the MOA |
| 7 |
DIRECTORS |
Min. 2 directors |
Min. 1 director |
| 8 |
RECOMMENDED FOR |
Multiple promoters |
Individual Proprietor |
| 9 |
NRI OR FOREIGN NATIONALS |
Can be created or managed
by NRIs or foreign nationals |
Only Indian citizens and Indian
residents are allowed to start |
ARTICLE OF ASSOCIATION VS
MEMORANDUM OF ASSOCIATION
| S.NO |
BASIS OF DIFFERENCE |
ARTICLES OF ASSOCIATION |
MEMORANDUM OF ASSOCIATION |
| 1 |
MEANING |
Defines rules and regulations,
duties, powers, liabilities and
rights of individuals associated
with the organization. |
Defines the company’s constitution,
powers, objectives, and constraints
of the organization. |
| 2 |
CONTENT |
It has the provisions as per the
requirements of the company. |
It contains mandatory 5 clauses:
(name, liability, capital, situation and object clause) |
| 3 |
AREA OF OPERATION |
Relationship between the
company and its members |
Relationship between the company
and the outsiders |
| 4 |
ALTERATION |
It can be altered by passing the
resolution in AGM |
It can be altered by passing the
resolution in AGM and after taking
the approval from the government |
| 5 |
IMPORTANCE |
Subordinate to MOA and
Companies Act |
It is supreme document and
subordinate to Companies Act |
| 6 |
AMMENDMENT |
AOA can be amended with
retrospective effect |
MOA cannot be amended with
retrospective effect |
| 7 |
REQUIREMENT |
Only private limited companies |
All companies |
TAX DEDUCTED AT SOURCE VS TAX
COLLECTED AT SOURCE
| S.NO |
BASIS OF DIFFERENCE |
TAX DEDUCTED AT SOURCE |
TAX COLLECTED AT SOURCE |
| 1 |
LIMITS |
Purchase of goods and
services |
Sale of goods and
services |
| 2 |
RETURNS |
4 |
1 |
| 3 |
RESPONSIBLE |
Individual or company
making payment |
Individual or company
selling goods or services |
| 4 |
TIME OF DEDUCTION |
When payment is due or made (whichever is earlier) |
At time of sales |
| 5 |
TRANSACTIONS |
Salaries, Rent, commission,
interest, etc. |
Cars, toll tickets, forest
products, tendu leaves,
etc. |
| 6 |
DUE DATES |
Deposited within 7days of
the next month in which
TDS is deducted. |
Deducted in the month in
which supply is received
and deposited within 10
days from the month end
in which supply was made. |
