An entrepreneur planning to start a new business venture has couple of questions before choosing a business entity for its business. Its decision would be based on a number of factors, viz. nature of business, cost of registration, number of members, extent of compliances required, benefits that each entity brings to the business, etc. Further with the introduction of the Companies Act, 2013 and concepts like LLP and One Person Company, entrepreneurs have a wide array of business entities to choice from. Therefore, it is wise for an entrepreneur to make a comparison between a Company, a LLP and a partnership Firm and understand the legalities, advantages and disadvantages of each of them.
We have, herein below, provided a comparison of some of the features of a Partnership Firm vis-à-vis a Limited Liability Partnership and a Company in the form of frequently asked questions that entrepreneurs usually have prior to selecting a particular type of entity.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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