Meaning |
Private Limited Company
Private company means a company which is formed by coming together of people for a profit motive.
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One Person Company
One Person Company (OPC) means a company which is formed with only single person as a member.
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LLP
LLP is a body corporate which is hybrid of partnership firm and company.
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Partnership Firm
A partnership firm is not a separate legal entity distinct from its partners. It is merely a collective name given to the individuals composing it.
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Proprietorship Firm
Proprietorship is a type of business that is owned, managed, and controlled by one person – who is the proprietor.
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Prevailing laws |
Companies Act
Companies are governed by ‘Companies Act, 2013’& rules made under.
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Companies Act
Companies are governed by ‘Companies Act, 2013’ & rules made under.
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LLP Act
Limited Liability Partnership are prevailed by ‘The Limited Liability Partnership Act, 2008’ and various Rules made there under.
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Partnership Act
Partnership is prevailed by ‘The Indian Partnership Act, 1932’ and various Rules made there under.
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NA
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Charter Documents |
MOA & AOA
Memorandum and Article of Association is the charter of the company which provides its main object clauses & scope of operation.
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MOA & AOA
Memorandum and Article of Association is the charter of the company that defines its scope of operation.
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LLP Agreement
LLP Agreement is a charter document of the LLP which denotes its scope of operation and rights and duties of the partners vis-à-vis LLP.
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Partnership Deed
Partnership Deed is a charter document of the firm which denotes its scope of operation and rights and duties of the partners.
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MSME (Udhyam Aadhar)
Udyog Aadhar (MSME) is certificate which signifies that the entity is micro, small or medium enterprise.
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Limit of Members |
2-200
It must have at least 2 and maximum 200 members.
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1
OPC is manages by one person only hence it requires only single person.
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2-Unlimited
There is no maximum limit on number of partners but must have at least two individuals as Designated Partners.
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2-20
At least 2 partners are required for it and which can’t exceed 20 partners.
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1
Single owner i.e. proprietor required for Proprietorship firm.
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Directors /Designated Partners |
2-15
It requires At least 2 Director and maximum 15 and further can be increased by special resolution.
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1-15
It required At least 1 Director and maximum 15 and further can be increased by special resolution.
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2-Unlimited
Minimum 2 designated partners and there is no maximum limit for LLP.
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NA
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NA
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Separate legal identity |
Yes
Company has separate legal identity from its subscribers of MOA.
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Yes
Being single owner still have separate legal identity from the company.
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Yes
LLP has separate legal identity from its partners and designated partners.
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No
Partners and the partnership firm are treated as single identity.
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No
Proprietor and proprietorship concern have same legal identity.
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Limited Liability |
Yes
The liability of Members are limited up to the amount of share capital which is subscribed by them.
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Yes
The sole Member of the company is liable only up to the amount of capital introduced by him.
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Yes
Designated Partners and Partner’s liability is restricted to the amount of capital contribution as mutually decided at the point of Agreement.
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No
Partners are jointly and severally liable for any liability of the firm as their liability is unlimited.
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No
Single owner has unlimited liability for any losses or debt in the proprietorship concern.
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Perpetual Life of the entity |
Yes
Entity’s life is not based on the shareholder’s life. It continues by changing of the owner’s share.
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Yes
In case of death of the shareholder the company is run by the nominee of the company.
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Yes
On death of partner or designated partner, Share of them will be transferred to their legal heir but this may not result in dissolution.
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No
It does not have perpetual succession as this depends upon the will of partners.
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No
Perpetual existence does not exist with the death of the proprietor concern.
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Annual Statutory Compliance |
High
Annual Filling of Company, Directors compliance, Audit, Income tax Return, Meeting and other Filling GST compliances.
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High
Annual Filling of Company, Directors compliance, Audit, Income tax Return, Meeting and other Filling GST compliances.
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Low
Annual Filling, Income tax Return, GST compliance is to be required and Audit is not mandatory.
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Low
Income tax Return and GST compliance Audit in case of Turnover crosses the limit.
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Lowest
Compliance with Income tax and GST only(if any).
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Transferability |
Yes
Shares are easily transferable from one to other.
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Yes
Share can be transferred by one person to other but nominee needs to be changed.
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Yes
Addition and deletion of partners are possible through change in share of capital contribution.
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Yes
Addition and removal of partner is possible new deeds with the changes in capital and profit sharing needs to be done.
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No
It cannot be transferred.
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Foreign Direct Investment (FDI) |
Yes
FDI is available under automatic route.
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No
Single owner hence FDI is not possible and not allowed.
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Yes
FDI is permitted subject to prior approval by the central government.
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No
FDI is not permitted in partnership firm.
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No
Small scale Business organization hence no FDI is permitted.
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