Private limited company Vs Limited liability partnership Vs Partnership firm

May 13, 2009 at 4:14 pm | In Company incorporation, Legal, Startup | 8 Comments

Sharda Balaji from Novojuris, wrote a very informative post on pluggd.in on the least understood and most young type of a commercial organization, called Limited liability partnership (LLP).  She also tells the various diff between a Private limited company, a  Limited liability partnership and a Partnership firm in a tabular form. Check out the article here:

http://www.pluggd.in/limited-liability-partnership-llp-company-comparison-297/

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8 Comments »

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  1. Hey Himanshu…

    Great post.. I am on the verge of opening a pvt. limited in bangalore with an authorized capital of 1 lac. I intend to pull in one of my friends as the 2nd director. do we need to think of distributing the stock options for now ?

    cheers – Dhruv

    Comment by Dhruv — August 7, 2009 #

  2. @Dhruv
    Yes you need to be very clear on the equity front. Later on these things cause a lot of trouble.

    Comment by Himanshu Khurana — August 7, 2009 #

  3. Thats correct. But how do i do the breakup. Since I want to keep the majority of the share and also keep some for Angels, VCs later and employee stock options.

    Comment by Dhruv — August 7, 2009 #

  4. Whichever way!! Even 99:1 is ok.

    When you add VCs etc later, usually the capital will be increased and more shares are added. So the equity for both of you will be diluted in equal proportion. So dont worry about that as of now. Think of what your share should be as of today.

    Comment by Himanshu Khurana — August 7, 2009 #

  5. hey Himanshu .. thank you :) you got some good stuff on marketing as well .. amazing !!!

    Comment by Dhruv — August 7, 2009 #

  6. Thanks! :)

    Comment by Himanshu Khurana — August 7, 2009 #

  7. We are at the verge of opening a susidiary in Hong Kong, so should it be a LLC or Pvt. Ltd. or any other form of a business entity. Also, how should we divide the shares between the parent company and the subsidiary? What the parameters to decide all this.

    Kindly guide.

    Comment by Richa — November 13, 2009 #

  8. LLC vs Pvt Limited company decision depends on various factors. See my post

  9. http://hkhurana.wordpress.com/2008/11/12/private-limited-company-versus-partnership-firm-which-one-i-should-go-for/

    10. for some points. Dividing the share entirely depends on the capital investment and the scale of business the subsidiary would have.

    Comment by Himanshu Khurana — November 13, 2009 #


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