Private Limited Company and Limited Liability Partnership are two different business structures governed by different legislation. Both entities offer many similar features, while there are also many differences. In this article, we will compare Pvt Ltd vs LLP from the viewpoint of an Entrepreneur starting a new business.
What is the meaning of Pvt Ltd and LLP?
A Private Limited Company is a company that is held privately, typically for small businesses. The shareholders of a Private Limited Company are only liable up to the number of shares they own. The shares of a Private Limited Company cannot be publicly traded.
An LLP, or Limited Liability Partnership, is a business with a minimum of two members and no maximum limit on the number of members. The liability of the members in an LLP is limited.
Comparison between LLP vs Private Limited Company
There are a few similarities and differences between Limited Liability Partnerships (LLPs) and Private Limited Companies (Pvt. Ltd. Co.). Let’s discuss both here for a better understanding:
An LLP requires a minimum of two members, but there is no limit on the maximum number of members. The liability of the members of an LLP is limited.
Is it possible register Private Limited & LLP in Virtual office
Yes its possible to Register office with Virtual office
As per the Indian Company Law, a company must provide a physical address for registration. Sections 12 of the Indian Companies Act, 2013 lay it down clearly as follows:
12. (1) A company shall, [within thirty days of its incorporation] and at all times thereafter, have a registered office capable of receiving and acknowledging all communications and notices as may be addressed to it.
(2) The company shall furnish to the Registrar verification of its registered office within a period of thirty days of its incorporation in such manner as may be prescribed.
(3) Every company shall— (a) paint or affix its name, and the address of its registered office, and keep the same painted or affixed, on the outside of every office or place in which its business is carried on, in a conspicuous position, in legible letters, and if the characters employed therefore are not those of the language or of one of the languages in general use in that locality, also in the characters of that language or one of those languages;
(b) have its name engraved in legible characters on its seal; if any;
(c) get its name, address of its registered office and the Corporate Identity Number along with telephone number, fax number, if any, e-mail and website addresses, if any, printed in all its business letters, billheads, letter papers and in all its notices and other official publications; and
(d) have its name printed on hundies, promissory notes, bills of exchange and such other documents as may be prescribed:
A registered office is a legal requirement for any individual that wishes to register a company. The purpose of the address is to provide a place for the company to receive official communication(s) from government bodies, with an address for delivering legal notices and statutory mail. It has to be a full, physical postal address within the state where the company is registered.
Both residential and non-residential addresses are acceptable, but commercial addresses are extensively used for the purpose of registration. The registered office doesn’t need to be within the same part of the county where the company conducts its main trading activities. It’s meant for receiving official mail and storing statutory records for inspection.