Differences between Partnership Firm, LLP, Company & Proprietary concern

Identify the correct format of business for you

 

Traditional
Partnership

Limited Liability
Partnership

Private Limited
Company

Proprietary Concern

Liability Unlimited Limited Limited Unlimited
Act Partnership Act Limited Liability Partnership Bill Companies Act  
Registration orIncorporaton Registration is optional Incorporation is mandatory Incorporation is mandatory Not required
Legal entity Not a legal entity It is a separate 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 Not required
Administrating authority Registrar of Firms Registrar of Companies Registrar of Companies Proprietor
Liability for statutory compliances All partners Designated partners Managing director Proprietor
Remuneration to partner or director No restrictions As per LLP agreement Restriction are imposed on the remuneration
paid to the director
No restriction
No. of members Minimum 2abdmaximum 20 minimum 2 and no limit on maximum number of
partners
minimum and maximum number of members
depends on the type of company
One
Filing of annual statements and returns Not required Required Required Not required
Dissolution can be dissolved can be wound up can be wound up can be dissolved