Different between Company and LLP

LLP Vs Company

Basis of Difference	Limited Lability Partnership	Private Limited Company
Minimum and Maximum Individuals in Business?	Minimum 2 Individuals is mandatory and no maximum Limit. In case if Body Corporate like Company or another LLP becomes partner, such Body Corporate will need to nominate any Individual to be Designated Partner to ensure that the LLP has at least 2 Individual as Designated Partner.	Minimum 2 Members and Maximum 200. Also, similar to LLP, even Private Company will need 2 individuals as a Director. While Body Corporate can become share holder of the Company, a Private Company will need minimum 2 Individual as a Director of the Company.
Registration	LLPs are registered under LLP Act, 2008 is registered with Registrar through ministry of Corporate Affairs (MCA)'s online portal www.mca.gov.in With effect from October 2, 2018, now Government has introduced LLP-RUN and FiLLiP to simplify the process of incorporation of LLP at par with Companies. Currently, with FiLLiP, promoters can apply for Name Approval, DIN and Incorporation of LLP.	Registration of Private Companies are now much easier and centralized process. On the occasion of 69th Republic Day of India, in order to ease of doing business in India, now the name application is made a very simple through RUN (Reserve Unique Name) Portal on MCA and entire Incorporation Process along with DIN Application etc. is clubbed into one form more commonly known as SPICe Form. Also, the Company Incorporation process is a centralized process where Government promises to process applications for incorporation in a day. Which means that effectively a Company can be incorporated in 4-6 working days? Additionally, now along with Incorporation of a Company, Government also allots PAN and TAN to Company at the time of Incorporation to reduce the timeline to start a Business in India.
Taxation	Profit of LLP are taxable at 30% plus surcharge. However, sharing of profit among the member is not liable to tax under current tax structure.	Private Companies with turnover upto Rs. 250 Crores are liable to pay tax at 25% plus surcharge and other Companies are liable for 30 % Tax rate. However, Dividend paid to Shareholders even from PAT (Profit After Tax) is taxable at 16.55%.
Charter Document	A Partnership Agreement or an LLP agreement is the main charter document of LLP. Partners of LLP have flexibility in finalizing the same.	Memorandum and Articles of Association (MoA and AoA) of the Company is the main charter document. The skeleton is provided in the Act and various regulations of Companies Act, 2013 controls the same. Which means that Company or its Shareholder has very limited scope in defining or relaxing the Compliance?
Meetings	Meeting in case of LLPs are voluntary and it is purely driven by the LLP Agreement.	Companies are required to hold minimum 4 Board Meeting every year and also minimum 1 General (Shareholders) Meeting, most commonly known as AGM. A Company cannot hold its General Meeting on Public Holiday or during non-business hours. Also, minimum notice is required for Board Meeting as well as Shareholders Meeting.
Addition/change in Ownership	In case of LLP any change in ownership has to be affected only and only by alteration of Agreement which should be signed by all the Partners of LLP.   Stamp duty will be applicable as per State of exection. As a result, transfer of Ownership in LLP is a bit difficult and cumbersome task.	Ownership in Private Limited Company can be transfer simply by executing a Security Transfer Form (known as SH-4) and on payment of Stamp duty. While in case of Private Companies, transfer of Securities requires Board Approval, Consent of only owners whose securities are transferred is required.
Compliance and ROC Filing	Only 2 form is mandatory to file every year viz. Form 8 (for Accounts) by October 30th of every year;  and Form 11 (Ownership declaration) by May 31st every year.	Companies are required to file quite a few forms as compared to LLPs. While Balance Sheet, Annual Return is mandatory it might require filing intimation regarding appointment of Auditor etc
Auditor Appointment	Appointment of Auditor is not mandatory. Also, only LLPs which crosses threshold limit of Turnover or contribution will require having its accounts Audited by qualified Chartered Accountant.	Appointment of Auditor is mandatory for a term of 5 years at a time even for a Company with no operation
Ideally Suited for?	LLPs are ideally suited for Professionals, Small Business Owners and business which is not capital incentive or a business idea where promoter is not looking for investment.	Private Companies are ideally suited for capital intensive business or for Promoters who are willing to raise funds through investors or Public Issue etc