Comparision chart
Category | Partnership | Company | LLP |
---|---|---|---|
Registration | Registration is optional | Registration with registrar of Companies required | Registration with registrar of Companies LLP require |
Distinct Entity | Not a seperate entity | Is a seperate Legal Entity under the companies Act 2013, | Is a seperate Legal Entity under limited liability Partnership Act, 2008 |
Cost of Formation | The Cost of Formation is 7000/- | Minimum statutory fee for incorporation of private company is Rs 13,000/- and Maximum statutory fee for incorporation of private company is Rs 27,000/- | Minimum cost of Formation of LLP is Rs. 9000/- only Comperatively Lesser than the cost of formation of Company |
Common Seal | There is no concept of common seal in partnership | It donate the signature of Company and every company shall have its own common seal | It donate the signature and LLP may have its own common seal, dependent upon the terms of agreement |
No. of Members | 2 to 20 in case of Non-Banking company, and 2 to 10 in case of Banking company | 2 to 15 members in case of Private Company and Minimum 7 members in case of Public Company | Minnimum 2 partners and there is no limitation of maxi,um no. of partners |
Ownership of Assets | Partners have joint ownership of all the assets belonging to partnership firm | The company independent of the members has ownership of assets | The LLP independent of the partners has ownership of assets |
Tax Liability | Income of Partnership is taxed at a Flate rate of 30% plus education cess as applicable | Income of company is Taxed at a Flate rate of 30% Plus surcharge as applicable | Income of LLP is Taxed at a flat rate of 30% plus education cess as applicable. |