| | | | Company | Parnership Firm | LLP |
| REGISTRATION | Compulsory registration required with the ROC. Certificate of Incorporation is conclusive evidence. | Not compulsory. Unregistered Partnership Firm will not have the ability to sue. | Compulsory registration required with the ROC |
| NAME | Name of a public company to end with the word “limited” and a private company with the words “private limited”
| No guidelines. | Name to end with “LLP” Limited Liability Partnership” |
| CAPITAL CONTRIBUTION | Private company should have a minimum paid up capital of Rs. 1 lakh and Rs.5 lakhs for a public company | Not specified | Not specified |
| LEGAL ENTITY STATUS | is a separate legal entity | Not a separate legal entity | is a separate legal entity |
| LIABILITY | Limited to the extent of unpaid capital. | Unlimited, can extend to the personal assets of the partners | Limited to the extent of the contribution to the LLP. |
| NO. OF SHAREHOLDERS / PARTNERS | Minimum of 2. In a private company, maximum of 50 shareholders | 2-20 partners | Minimum of 2. No Maximum |
| FOREIGN NATIONAL AS SHAREHOLDER / PARTNER | Foreign nationals can be shareholders | Foreign nationals cannot form partnership | Foreign nationals can be partners |
| TAXABILITY | The income is taxed at 30% + surcharges+cess | The income is taxed at 30% + surcharges+cess | Not yet notified |
| MEETINGS | Quarterly Board of Directors meeting, annual shareholding meeting is mandatory | Not Required | Not Required |
| ANNUAL RETURN | Annual Accounts and Annual Return to Filed with ROC | No Returns to be filed with Registrar of Firms | Annual statement of accounts and solvency & Annual Return has to be filed with ROC |
| AUDIT | Compulsory, irrespective of share capital and turnover | Compulsory | Required, if the contribution is above Rs. 25 lakhs or if annual turnover is above Rs. 40 lakhs |
| HOW DO THE BANKERS VIEW | High creditworthiness, due to stringent compliances and disclosures required | Creditworthiness depends on goodwill and credit worthiness of the partners | Perception is higher compared to that of a partnership but lesser than a company |
| DISSOLUTION | Very procedural. Voluntary of by order of National Company Law Tribunal | By agreement of the partners, insolvency or by Court Order | Less procedural compared to company. Voluntary of by order of National Company Law Tribunal |
| WHISTLE BLOWING | No such provision | No such provision | Protection provided to employees and partners who provide useful information during the investigation process |
