What is the Difference Between LLP and Pvt Ltd Company?

Here are some of the factors that you can consider while choosing between a private limited company and an LLP. 

1. You need to look for the compliance needs. PVT limited companies have tight rules and regulations as compared to LLPs. 
2. For the capital needs, you can consider a private limited company because it allows share insurance. 
3. If we talk about on the basis of business flexibility, then private limited companies are the best. They are a more easy option for the investors who are looking for business and rapid growth. 
4. For the share of ownership, in an LLP, you will need the partners' consent, but in a private limited company, you can transfer your ownership easily. 

The Advantages and disadvantages of the Private Ltd company. 

Advantages

• It can raise capital through the shares. 
• It is best for the business that has investor interest and growth potential. 

Disadvantages 

• It has strict rules and regulations. 
• Pvt limited companies have higher compliance and auditing. 

The Advantages and Disadvantages of the LLP

Advantages

• LLP has an easy process compared to a private limited company. 
• The LLPs are best for professional firms that are looking for liability protection. 
• It has fewer restrictions on decision-making and has flexible management and responsibility. 

Disadvantages

• An individual cannot issue shares to raise capital after LLP registration. 
• It is less located in the businesses and aims at external investments. 

The registration process for the governing document of an LLP agreement is between the partners. The LLP should be registered with the  Ministry of Corporate Affairs (MCA) according to the Limited Liability Partnership Act, 2008, but this is not a public document. Whereas, a Pvt company's registration documents are a Memorandum of Association (MOA) and articles of Association (AOA) and are registered with MCA under the Companies Act, 2013.