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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