Choosing the right corporate structure for your business is just as important as any other business-related activity. A proper business structure allows the company to operate efficiently and achieve the required business goals. In India, all companies are required to register as part of their compliance with the law.
It can operate as a sole proprietorship or partnership or limited liability company or limited liability company, regardless of the amount of earnings or capital. However, section of the Companies Act 2013 requires company registration for certain partnerships.
A limited liability company is a privately owned legal entity for small businesses. The liability of members of a limited liability company is limited to the number of shares held by each. The shares of a private limited liability company cannot be publicly traded. A Limited Liability Partnership is a legal entity that requires a minimum of two members and has a maximum of unlimited members. Members of the LLP have limited liability.
Pvt. Ltd. and LLP have many similarities but differ in many functions and structures. If you are a entrepreneur who needs outside funding and wants good sales, a limited liability company is the perfect business structure for you. A responsible partnership works best.
