Legal Structure

• An LLP is governed by the Limited Liability Partnership Act, 2008
  
• A Private Limited Company is governed by the Companies Act, 2013
  
• LLP is a partnership with corporate features, while a Private Limited Company is a corporate entity
  
• LLPs are more suitable for professional services and smaller enterprises.
  
• Private Limited Companies are generally used for growth-oriented and investment-backed businesses.
  

Ownership and Management

• In an LLP, partners own and manage the business directly

• In a Private Limited Company, shareholders own the company, and directors manage it.
  
• LLP does not issue shares or have a shareholding structure
  
• A Private Limited Company must have share capital and shareholders.
  
• Decision-making in an LLP is guided by the LLP agreement, while in a company, it follows the articles of association.
  

Compliance Requirements

• LLPs have lower compliance and reporting obligations.s
  
• Private Limited Companies have stricter compliance, such as board meetings, annual general meetings, and resolutions.s
  
• LLPs need to file Form 8 and Form 11 annually.
  
• Companies must file financial statements, annual returns, and another secretarial reports.s
  
• Auditing is mandatory for companies regardless of turnover, while LLPs are required only beyond a certain threshold.
  

Formation and Maintenance

• LLP formation is generally simpler, faster, and less costly
  
• Private Limited Company formation requires more documents and a higher compliance setup.
  
• LLP agreement defines internal rules; no memorandum or articles are needed
  
• Companies must adopt the Memorandum and Articles of Association at incorporation.
  
• Maintaining statutory registers is mandatory for companies, but not for LLPs
  

Capital and Funding

• LLPs do not have a concept of share capital or shareholders.
  
• Private Limited Companies can raise funds through equity shares.
  
• LLPs are generally not preferred by external investors or venture capitalists.s
  
• Private companies offer flexibility in issuing shares and raising capital.