Step-by-Step Process for Private Limited Company and LLP Registration in India
When starting a business, choosing the right legal structure is one of the first decisions you’ll need to make. In India, two of the most common options for entrepreneurs are Private Limited Companies and Limited Liability Partnerships (LLPs). Both offer advantages in terms of liability protection and operational flexibility, but they serve different business needs. Understanding the key differences between these two structures will help you make an informed decision about which one suits your business goals and operational style. What is a Private Limited Company? A Private Limited Company (Pvt Ltd) is a business entity that is separate from its owners, meaning the company itself can own property, enter contracts, and incur liabilities. The liability of shareholders in a Private Limited Company is limited to the unpaid amount on their shares, which means personal assets are protected if the company faces financial challenges. Key Features of a Private Limited Company: Separate...