Differences between Partnership Firm, Company and LLP
Identify the correct format of business for you
The first step when you want to register your business in Hyderabad is to identify the format in which you want to operate the business. There are different formats of business like Proprietory concern, Partnership Firm, Private Limited Company, Limited Company and Limited Liability Partnership. The comparison between these formats is given below:
Traditional Partnership
Limited Liability Partnership
Company
Liability
Unlimited
Limited
Limited
Act
Partnership
Act
Limited
Liability Partnership Bill
Companies
Act
Registration
or Incorporaton
Registration
is optional
Incorporation
is mandatory
Incorporation
is mandatory
Legal
entity
Not a
legal entity
It is a
separate legal entity
It is a
separate legal entity
Documents
to be filed
Partnership
Deed
Incorporation
Document
Memorandum
& Articles of Association
Administrating
authority
Registrar
of Firms
Registrar
of Companies
Registrar
of Companies
Liability
for statutory compliances
All
partners
Designated
partners
Managing
director
Remuneration
to partner or director
No
restrictions
As per
LLP agreement
Restriction
are imposed on the remuneration paid to the director
No. of
members
Minimum 2
abd maximum 20
minimum 2
and no limit on maximum number of partners
minimum
and maximum number of members depends on the type of company
