HomeCorporate LawPrivate Limited vs LLP: Legal Differences New Entrepreneurs Should Know

Private Limited vs LLP: Legal Differences New Entrepreneurs Should Know

Business start karte waqt Private Limited Company aur LLP (Limited Liability Partnership) dono popular options hain, lekin inka structure different hai.

Private Limited company ek separate legal entity hai jisme shareholders aur directors hote hain. Shares issue kiye ja sakte hain, aur future me VC ya investors ko onboard karna relatively easy hota hai. Compliance thoda zyada hota hai – board meetings, ROC filings, share capital rules etc.

LLP me partners hote hain, lekin unki liability limited hoti hai – matlab firm ke debts ke liye generally personal assets risk pe nahi hote (fraud ya wrongful acts ke alawa). LLP me internal structuring flexible hoti hai, compliances comparatively kam, aur partnership-style management hota hai.

Tax treatment, funding options, brand perception, exit strategy – sab consider karna chahiye. Startups jo scale, investment aur ESOPs plan karte hain, woh usually Private Limited prefer karte hain. Service professionals, small partnership-style setups ke liye LLP kaafi attractive hai.

Dono cases me, agreement / Articles of Association carefully draft karna important hai, taki rights and responsibilities clear ho aur future disputes kam se kam ho.

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