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Differences between Pvt Ltd vs LLP vs OPC vs General Partnership vs Sole Proprietorship

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We try to differentiate the various types of entities available for doing business in India at present. Varying from the simplest of all to the most complicated ones. The choosing of a particular type varies with each situation. It is recommended that you talk to our experts before choosing. Lets try and differentiate between Pvt Ltd vs LLP vs OPC vs General Partnership vs Sole Proprietorship. 

Features Pvt. Ltd. LLP OPC Sole Proprietorship General Partnership
1. Legality Separate Legal Entity Separate Legal Entity Separate Legal Entity Not a separate legal entity Not a separate legal entity
2. Governed By Companies Act, 2013 Limited Liability Act, 2008 Companies Act, 2013 NA Indian Partnership Act, 1932
3. Registrations Registered with ROC Registered with ROC Registered with ROC Not Required Not mandatory
4. Name Affix “Private Limited” Affix “LLP” Affix “One Person Company” NA NA
5. Recommended For Start-ups specifically IT Professionals Single Promoters Small Traders Normally Family Businesses
6. Capital Contribution Minimum Authorized Capital of Rs. 1 lakh No Limit Prescribed Minimum Authorized Capital of Rs. 1 lakh NA NA
7. Fines & Penalties High Very High High Medium Medium
8. Minimum number of directors Minimum 2 directors, one has to be resident Minimum 2 designated partners, one has to be resident 1 Resident Director NA Minimum 2 partners
9. Annual Filing To Registrar of Companies To Registrar of Companies To Registrar of Companies NA NA
10. Audit Compulsory No annual audit if turnover < 40 lakhs and capital contribution < 25 lakhs Compulsory NA Compulsory
11. Registration Costs Higher Medium Medium Low Low
12. Liability Limited Limited Limited Unlimited Unlimited
13. Funding Ideal, can also raise money Difficult, cannot raise money from public NA NA Difficult
14. Conversion Can be converted into Public/LLP Cannot be converted into OPC/ Pvt. Ltd. Can be converted into Public/Private Company NA Can be converted to a private Company

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