Proprietorship, LLP or Pvt. Ltd. Co. – Which company type is right for me?

2 Answers

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   Joseph on Nov 28, 2010 Reply

   As soon as you register a company or LLP, you come under regulatory authority and you have to comply with all the rules & regulations. It is additional work and it takes time and cost you too. From this angle being a proprietor is beneficial.

   But being a proprietor doesn’t give you a legal standing and it might be hard to convince financial institutions to lend you money. Also any losses and liabilities will affect your personal assets (in company & LLP it is only the capital that you employ is impacted).

   This is just a generic difference. For specifics, please get in touch with a CA or a lawyer.

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   Ranvijay Singh on Mar 22, 2011 Reply

   Limited Liability partnership has got some privileges like a private limited company.

   In a private limited company the liability of the directors are limited end same case with partners in LLP but under some circumstances the partners have to pay the damages keeping their assets at stakes.

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