Private Limited Company vs. LLP: Startup

A great number of aspiring business owners are interested in learning more about the distinctions between a LLP Registration consultant and a Private Limited Company (PLC), as well as which one of these entities is most suited for the model of their company.

In this article, we will contrast the two varieties of businesses and analyze the ways in which they vary from one another in a variety of respects.

Registration Process

There are a few phases in the registration procedure that are somewhat different for the two different kinds of businesses, but for the most part, the processes are the same.

The following procedures need to be completed in order to register a Private Limited Company: –

  • Acquiring Digital Signature Certificates (also known as DSCs) for the Directors in question.
  • Obtaining a Director Identification Number (DIN) for the Directors in question.
  • Obtaining the MCA’s permission for the name.
  • Submitting paperwork to get incorporated.

The following procedures need to be completed in order to form a Limited Liability Partnership (LLP) Company: –

  • Acquiring Digital Signature Certificates (also known as DSCs) for the aforementioned Partners
  • Acquiring Designated Partner Identification Numbers (DPIN) and Director Identification Numbers (DIN) for the relevant Partner.
  • Obtaining the MCA’s permission for the name.
  • submitting paperwork to get incorporated.

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Private Limited Companies and Limited Liability Partnerships (LLPs) are both requires to register with the Ministry of Corporate Affairs (MCA), and once they do so, the MCA will provide a Certificate of Incorporation to each of the businesses.

The amount of time needed to finish the registration procedure in its entirely is practically same for both kinds of business (i.e. 20 days approx.).

Fees Required for Registration

The costs associated with registering a Private Limited Company are much greater than those associate with registering a Limited Liability Partership (LLP).

The amount of paperwork that has to be done or the number of papers that need to be printed on Non-Judicial Stamp Paper is much lower in a Limited Liability Partnership (LLP) than it is in a Private Limited Company.


Both the Limited Liability Partnership (LLP) and the Private Limited Company give many of the same benefits to its members. 

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Both kinds of companies are different legal organizations, and although ownership of either form of corporation may be transferred, the Private Limited Company offers greater leeway in this regard than does the Public Limited Company. 

Both the Limited Liability Partnership and the Private Limited Company Registration have enduring existences.


As what just discussed, the parameters of a Private Limited Company have more leeway to transfer or share ownership rights with other parties while using this business structure.

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The ownership of a Private Limited Company is figured out by looking at the company’s shares. 

There may be a maximum of 200 shareholders in a private limited company. 

In a private limited company, the shareholders do not take part directly in any management activities of the company, and there is a complete distinction between the shareholders and the management. This gives a private limited company an advantage over a limited liability partnership (LLP) in terms of the management and ownership features that are available.