Difference Between Partnership Firm, LLP, and Private Limited Company
When starting a business in India, one of the most crucial decisions entrepreneurs must make is choosing the right business structure. The three most common business structures are Partnership Firm, Limited Liability Partnership (LLP), and Private Limited Company. Each has its own legal implications, benefits, and compliance requirements. In this article, we will explore the key differences between these three business entities to help you make an informed decision. 1. Definition and Legal Identity Partnership Firm : A partnership firm is an association of two or more individuals who come together to run a business under a partnership agreement. It does not have a separate legal identity from its partners. LLP (Limited Liability Partnership) : LLP is a hybrid business structure that combines elements of both a partnership and a company. It has a separate legal identity from its partners. Private Limited Company : A private limited company is a business entity registered under the Compa...