Comparison

Private limited company registration process and the LLP registration process are remarkably similar with some differences in the documents and forms filed for incorporation.

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Both LLP and Private Limited Company offer many of the same features. LLP
and Private Limited Company are both separate legal entities and have assets and liabilities that are separate from that of the promoters/partners. LLP and Private Limited Company are both transferable, though a Private Limited Company offers more flexibility when it comes to transferring or sharing of ownership. LLP and Private Limited Company both have perpetual existence , unless and otherwise wound-up by the promoters or the competent authority.

A private limited company can raise funds from Angel Investors, Private Equity Funds, Venture Capitalists, Banks and NBFCs. An LLP can raise funds from Partners, Banks and NBFCs. Thus, it can be said that alternatives for fund-raising are more available to Private Limited than to LLP.

Limited Liability Partnership

LLP is one of the most convenient type of business entity to incorporate and manage in India. With an easy incorporation process and simple compliance formalities, LLPs are the preferred entity type for Professionals and Micro and Small businesses that are family- owned or closely held. Limited liability partnership is an alternative corporate business form that offers the benefits of limited liability to the partners at low compliance costs. It also allows the partners to organize their internal structure like a traditional partnership. A limited liability partnership is a legal body having a separate legal identity, liable to full extent of its Capital Contribution. However, the liability of the partners is limited.

Scope of work

The average time taken to complete an LLP registration is about 15 – 20 working days, subject to the Government processing time and client document submission. At the start of the engagement, your Engagement Manager will reach out to you for the collection of the necessary information or documents for the registration of LLP. The data can be submitted online through our mobile app or website. Once the information is received, it is verified by the Engagement Manager, the process for obtaining Digital Signatures for the Partners of the LLP would be initiated. On submission
of the digital signature application, the applicant would have to complete OTP verification and a video KYC check. In parallel to the digital signature application process, we also file a request with the MCA for reserving the name of the LLP – you had selected. On obtaining the Name Approval for the LLP and the Digital Signatures for the proposed partners, we would draft all the incorporation documents for the registration of the LLP and
sent it to the Partners for signature. All the Partners must sign the documents and upload a scanned copy of the signed document on the Bizcruise platform. The signed incorporation documents are submitted along with the application for the incorporation of LLP to the MCA. The approval from MCA can take anywhere between 2 – 5 working days. Once the approval is obtained, the LLP would be incorporated, and we shall begin with the process of helping you obtain PAN for the LLP and opening of bank account in the name of the LLP. In parallel, we also draft the LLP Partnership Deed. All the
partners of the LLP must sign the LLP Partnership Deed on stamp paper, and the signed copy must be uploaded on the Bizcruise platform within 25 days of incorporation. The signed LLP partnership deed will then be verified by the Engagement Manager and uploaded on the MCA portal within 30 days of incorporation to complete the LLP registration process.

Advantages

  • Separate legal entity
  • Allows for flexible roles to Partners
  • Provides for Relative Ease of Formation
  • Offers Possible Pass-Through Tax Relief
  • No minimum capital requirement
  • Savings from lower compliance burden
  • Easy to wind-up

Documents required

For Partners:
– PAN Card
– Aadhaar Card
– Passport-size photo,
– Anyone of the following (for id proof):
a. Passport,
b. Driving License,
c. Voter’s Id
– Anyone of the following, not older than 2 months (for address proof):
a. Bank Statement/ Passbook with name and address,
b. Electricity Bill in the name of the Partner,
c. Mobile/ Telephone Bill in the name of the Partner.
For LLP:
– Utility Bill, not older than 2 months (for registered office proof) – Any one:
a. Electricity Bill,
b. Mobile/ Telephone Bill,
c. Gas Bill,
d. Property Tax Bill along with payment receipt,

FAQ'S

Same as it is on the Bizcruise website. No changes.