2. M/s Asija & Associates LLP, Chartered Accountants
3. M/s Asija & Associates LLP, Chartered Accountants
4. M/s Asija & Associates LLP, Chartered Accountants
5. M/s Asija & Associates LLP, Chartered Accountants
6. COMPARISON BETWEEN LLPAND COMPANY
Criteria LLP Company Which is better
LLP / Company
Registering Body To be registered with
Registrar of LLP.
To be registered with
Registrar of Companies
_
Charter Document LLP agreement is the
charter document
Memorandum of Association
is the charter document
_
Annual General
Meeting
Not Mandatory Mandatory LLP
Audit Requirement If turnover exceed Rs.40
Lakhs or Contribution
exceeds 25 Lakhs, then
audit is mandatory
Audit of accounts is
mandatory
LLP
Registration cost Comparatively Cheaper Comparatively Expensive LLP
Dividend
Distribution Tax
Not Applicable DDT @ 15% * LLP
M/s Asija & Associates LLP, Chartered Accountants
7. COMPARISON BETWEEN LLPAND COMPANY
Criteria LLP Company Which is better
LLP / Company
Cost of Compliance Very Less Quite High LLP
Board Meeting Not Required Mandatory LLP
Management Managed by the
Designated Partners as
per LLP agreement
Managed by the Directors
elected / appointed by
members of company
_
Preparation of
Financial Statements
No Specified Format
prescribed
Statements to be made as
Per Schedule III
LLP
Board Report Not Required Mandatorily Required LLP
Filing of Financial
Statements
Not Required Mandatorily Required LLP
Registration of
Charges
Not Required Required LLP
Method of
Accounting
Cash or Accrual Accrual LLP
M/s Asija & Associates LLP, Chartered Accountants
8. COMPARISON BETWEEN LLPAND COMPANY
Criteria LLP Company Which is better
LLP /
Company
Minimum Number of
Members
2 Partners OPC: 1 Member
Private Company: 2 Members
Public Company: 7 Members
_
Maximum Number of
Members
Unlimited Private Company: 200
Members
Public Company: Unlimited
LLP
Preparation of
minutes
Not Required Required LLP
Maintenance of
Statutory Registers
Not Required Required LLP
Liability The liability of
partners are Limited
to the contribution
as per LLP
agreement
The liability of members are
Limited to the share taken or
guarantee given and does not
extends to personal property
_
M/s Asija & Associates LLP, Chartered Accountants