Difference between Proprietorship vs Partnership vs LLP vs Pvt Ltd Company

When you are starting your business, the most important question would be whether you should start your business as a #Proprietorship, as a #Partnership, as a #LimitedLiabilityPartnership (LLP) or as a #PrivateLimitedCompany.
This video clearly explains the difference between Proprietorship, Partnership, LLP and Private Limited Company and how you can choose between them.
Link to know about : vakilsearch.co...
If you need any help with starting your business, all you need to do is send an email to [e-mail].
Difference between Proprietorship vs Partnership vs LLP vs Pvt Ltd Company
If you have been thinking about starting a business in India then you have four options to choose from,
1.Proprietorship,
2.Partnership,
3.Limited Liability Partnership
4.Private company.
Proprietorship
A proprietorship is also known as a sole proprietorship, sole meaning single or individual. In a sole proprietorship, you are the only person running the business. A sole proprietorship is very easy to start. All you need is government registration in the name of the sole proprietorship. Let's say for example you are running a food business and you want to name the business as ‘Rajesh foods’, in that case, all you need is a government registration in the name of ‘Rajesh Foods’. This government registration could be a shop and establishment registration, a sales tax registration or a service tax registration. The moment you take any registration in the name of your proprietorship, your proprietorship is considered to be registered.
Partnership
In a partnership, you have more than one person running the business, as partners. A partnership business is very easy to start. All you need is a partnership agreement. Once the partnership agreement is drafted the partnership is said to be ready. Registration of a partnership is not mandatory.
Even though a partnership or a proprietorship is very easy to start, they come with a very high risk. The risk in legal terms it's called unlimited liability. What that means is that if the business gets into legal trouble and is required to provide compensation of Rs. 10 Lakhs to the opposite party. Then if the company bank account has to have that much or more money to be able to make the payout. If not, then the business owner or owners will have to sell various personal properties or assets to pay for the compensation. That's why they say the liability in a proprietorship and in a partnership are unlimited! Hence, it is strongly advised to stay away from a proprietorship or a partnership. And that's the main reason why more and more startups today are looking at and cooperating on a limited liability partnership or a private limited company. It is incorporated under the Ministry of Corporate Affairs.
Limited Liability Partnership
A limited liability partnership (LLP) is just another partnership with liability limited. For example, let's say you have contributed Rs.10000 to start your limited liability partnership and if your LLP gets into any legal trouble, you are only required to pay Rs. 10,000. So your liability is limited to the extent of your contribution to the LLP, and not more than that. Hence, your personal assets and property are safe. An LLP is a very new concept in India, just about 3-4 years old, and not many people know about it. The government fee is just over Rs. 2000 to start a limited liability partnership. Hence, you must strongly consider a limited liability partnership as one of the legal structures for starting your business. In a limited liability partnership, the only problem is that if you want to go global or want to bring in investments in return for equity or stake, or you want to open your business for public investment, it is not possible with an LLP. In such cases, you will have to go for a private limited company.
Private Limited Company
The concept of a private limited company has been in existence in India for about five decades or more. It's a very well structured concept. In a private company, the liability of its members is limited to the extent of their contribution. Their personal assets and property are safe in a private company. A private limited company brings with it a lot of trust and credibility to your business. If you are looking at investments and funding in return for equity or stake in your company then a private limited company is your best option. It is incorporated under the Ministry of Corporate Affairs.
To recap, the first option is a proprietorship. It's very easy to start. All you need is some government registration in the name of the proprietorship. That's it! The next option is a partnership where two or more members join together to start their business to start a partnership. All you need is a partnership agreement.

[@saidshafik6604]

Thank you for video mr.hamid,
1. can you tel me the cost to register as pvt ltd?
2. Drawbacks of pvt. Ltd cmpny
3. Investors investing as loan can be taken in pvt ltd?
4. Do we need all partners presence for registration of pvt ltd
Please reply thnk you in advance

[@csshahbazkhan2752]

if any query
plz, contact - 8982766623

[@gfllll]

When my company is a billion dollar company , i will thank you for explaining this to me.

[@crimsonknight5575]

Chiraag Kapil 😅

[@shds343]

Chiraag Kapil confident level

[@bhishampratap]

it was a pleasure listening to you hamid. ill be calling you soon

[@suneetaggarwal]

I disagree with the speaker. he seems to promote Pvt Limited only and discouraging sole proprietorship and partnership.selection of structure should be based on the nature of business and internal capital structure required for the business.
Would you recommend somebody to open a pvt limited company for operating in grocery business through a shop ?

[@bhishampratap]

i am not sure about hamid and shouldnt be speaking on his behalf. but here is the deal: if you plan to invest $100,000 in your grocery business via your wealthy cousin into the business then, according to him, you should go for a pvt ltd

[@rajivsyadav]

Very helpful..... Its cleared my issue related to llp n put Ltd....thanks a lot

[@csshahbazkhan2752]

if any query
plz, contact - 8982766623

[@Singh90419]

You explained it in very easy and perfect way. Thank you.

[@armansiddiqui12]

plz provide vedio on compulsory registration and voluntary registration
in MVAT

[@michaelkeishing3288]

ive started a small budget accommodation hotel what do you suggest i do, and i dont know if this information matter but i own the property too.

[@Vipulchauhan]

This is very useful for me : Thanks for sharing this Precious info

[@srinit8411]

Its really very useful... Like to see more like this.

[@HirenDhuvad]

Good One... Keep up the good work guys. Simplicity & clarity is best way to explain...

[@sonarelfsonarelf3987]

Our company also are looking for partnership ,we are in Angola , and our project is Agriculture and famer also indistry

[@csshahbazkhan2752]

if any query
plz, contact - 8982766623

[@shaikjabbar9567]

If we register for Pvt Ltd, can we include multiple business like real-estate, online sales, service provider, transport business?

[@csshahbazkhan2752]

if any query
plz, contact - 8982766623

[@NadeemWBR]

Thanks hameed bhai, it help me

[@ArunKumar-cp4oz]

please upload videos regarding GSTIN

[@nareshananthula9057]

very useful...thank u......!

[@vineetgaur]

thanks sir, you cleared the doubt exactly!,
sir make videos on import export business

[@asraghuveeranveeran4527]

good speech,can understand easily,and very worth to knowledge thurst people.
thank u

[@absutube123]

Nice Video. Very simple and clear

[@vakilsearchonline]

Thanks Abdulbari for your comment. We are glad that you found the video simple. Please feel free to post your questions as well.

[@naveenprasath2009]

You guys are simply superb..very helpful for people who starts new business..keep it up

[@geetanjalidas2673]

Sir, where LLP applies and where ULLP applies...

[@RenoyGeorge]

Please refer to our LLP service page vakilsearch.com/llp-registration-india

[@MrNams]

What is best option to start eCommerce

[@YatinTribhuwan]

Very well explained.. Like a Pro-fessor! :)
Thanks a ton!

[@swaroopds]

Is there a taxation difference of all these 4 types of companies? Can you please throw some light on it?

[@csshahbazkhan2752]

if any query
plz, contact - 8982766623

[@sociocare7207]

THANK YOU SOOOO MUCH ...YOU HAVE CLEARED MANY OF MY DOUBTS....GOD BLESS YOU....THANKS AGAIN...

[@Sanchitgulati30]

Can a private limited director can be salaried ? How ?

[@csshahbazkhan2752]

if any query
plz, contact - 8982766623

[@dilliganeshthirumalai5720]

Pls tell us the Tax difference between proprietorship and Pvt ltd

[@csshahbazkhan2752]

if any query
plz, contact - 8982766623

[@Wwahidd]

Sir are you providing the lawyers for court cases.. because i can trust you because of your transparency in work.. if it is possible so how can i appoint lawyer with vakilsearch

[@csshahbazkhan2752]

if any query
plz, contact - 8982766623

[@Nathpalace]

Thanks Very Helpful

[@sushmasingh2511]

very helpful video for new business start up thanks

[@vakilsearchonline]

Thanks Sushma. Glad we could help! :)

[@makineedidorababu3329]

MSME(UDYOG AADHAAR) registration is enough for proprietary ship company (led bulb manufacturing)

[@vakilsearchonline]

MSME is optional, it is not mandatory. You'll get certain benefits if you go for MSME registration. But you may have to get a Factory License. If you need more info, you can also reach out to us on WhatsApp at [phone].

[@gauthamkshatriya2953]

HI please can you make a video on Inc company i want to start an Inc company

[@csshahbazkhan2752]

if any query
plz, contact - 8982766623

[@floridaamorchannel6007]

Sending full support.

[@bbmat2010]

good video explains concepts well and in simple terms

[@2010amitpatil]

Thank You!
It will help me a lot.

[@pushpindersingh5749]

Hello Sir
Can a LLP in India file Dormant Status, if yes
Then plz tell how ?

[@csshahbazkhan2752]

if any query
plz, contact - 8982766623

[@AndamanTripOnaBudget]

GREAT JOB HAMID BHAI.... CONGRATS

[@p.ravikumar2188]

very useful bro..

[@kabiirg.8834]

Great video thanks!!.
So a relative has a hobby class academy that she runs from her home, it's very small scale, dkes she need a shop & establishment license if it is run from home?
and if she wants to go for either a partnership agreement or LLP which would be better?

[@vakilsearchonline]

Hi Kabiir, glad you liked our video. Please Whatsapp us at 7200365365. Also, we have an exclusive "AskaLawyer" Facebook and Insta session where our lawyers will clear all your queries. Our next session is coming soon. Here's the first session ua-cam.com/video/eUhClrRehw0/v-deo.html Keep watching this space.
Read Less

[@nirupnair3479]

Very Useful...thank you.... but are their any downsides in LLP and Pvt Ltd Co.

[@HariKrishna-op5fv]

Many Thanks Hamid for the video.. will you deal all about this process?

[@SajidShaikh-wi2gq]

Once we have register our propritership firm in future can we make the same company with same name llp company

[@csshahbazkhan2752]

if any query
plz, contact - 8982766623

[@Saswati_chumki]

Very nice 👍👍👍

[@vakilsearchonline]

Thank you

[@udaymakwana5692]

Awsome facts 👍👍 Thanks so much 👍👍

[@guttulasubbaraol9646]

This is very useful for me. Thank you Sir.

[@kunalk8787]

Great video ! Kudos to Vakilsearch.com.

[@vakilsearchonline]

Thanks a lot Kunal for your comment. Our experts would be glad to clarify your questions, if any.

[@divyapaluru8237]

vakilsearch vakilspeak పథత

[@saajeeb]

Very easily explained, thanks man.

[@dinu6777]

nice explanation in Short duration !! Thanks

[@syedsirajuddinquadri3195]

Good, its helpful. Thank you

[@Faster2525CK]

Hello Sir, I have a registered pvt ltd company, since 2 years i am filing IT returns - spending Rs 10k for the same but the business is not started earning a single rupees, recently i am setting up e-commerce online business, I am planning to close the pvt ltd and register a proprietorship for managing ecommerce, can you please advise whether can i cancel the pvt ltd or keep continue it. please suggest.. thanks.
Be Safe.... Keep social distancing

[@csshahbazkhan2752]

if any query
plz, contact - 8982766623

[@NitishPareek]

Very informative video. Thanks. One more thing though, who all among the above 5 can add INC at the end of the name?

[@vakilsearchonline]

Inc. is the abbreviation for incorporated, and it's one of the legal structure for businesses in the US. In India, we can't use Inc. and equivalent of Inc. in India is Pvt. Ltd.

[@bissgraphics5138]

Thanks, very useful info for starting a business

[@jonishkonthoujam8501]

Its helpful. Thank you.

[@MilindBME]

thank you sir it was amazing to hear this

[@ajazkhan92]

Great Initiative..Keep continue.

[@krutiksuhagiya7177]

In partnership firm other LLP company was create as partner???

[@vakilsearchonline]

An LLP being a separate legal entity, it can become a partner in another firm. If you need more info, you can also reach out to us on WhatsApp at [phone].

[@shekarpulugam]

Awesome, thank you so much.

[@vakilsearchonline]

+SHEKAR PULUGAM Glad we could help!! :)

[@udayanshukla6024]

Well explained, Hamid. Thank you!

[@mypicks7730]

Superb

[@smmedia3764]

Good video

[@Predatorcom1987]

how to give partnership in proprietary fim

[@shahnawaznadkar6846]

hi,
plz clarify that I'm a single owner then is it possible to go for LLP?
and what is cost or expenses for opening LLP or Pvt Ltd?

[@ashusachdevaassociates5104]

You can go for LLP or Private Limited also for detailed clarification you can reach us at 08802453426

[@RenoyGeorge]

Please check our LLP services at vakilsearch.com/llp-registration-india

[@santoshcbly4537]

Thank u for the Information Sir👍

[@HarshHudda]

Hello, I already have registered for a partnership firm, is there any way I can convert to a LLP or a Pvt Ltd?

[@csshahbazkhan2752]

if any query
plz, contact - 8982766623

[@anirbandasgupta3992]

i want to start business online. I want to sale my own product. I dont have any commercial place. i want to do it from home. So, i want to know
1. How can i get VAT/CST no.?
2. May i register my residencial address as a company address?

[@deepikalal1939]

I also have dis same question..

[@deepikalal1939]

but I don't have my own product ...I have to buy them from wholesale sites...how to do and how to start ...plz guide

[@prof-bussolutionsllp204]

Both of you can visit our website www.prof-bussolutions.com or mail us on [e-mail] or call us on 7838840547,8439942519. We will help you to register your business. Yes you can start your business from your residence . please let us know about state.

[@mgnekar]

Is it possible to start Private Limited Company from home/garage ?

[@007Devguru]

thanks

[@malekakram21]

very nice

[@ansif2000]

Good work. Thanks Hamid.

[@gayatriraut9966]

Thanks you so much for Info...

[@vakilsearchonline]

+Gayatri Raut Glad we could help!!

[@kushalideal]

Awesome video..........

[@vakilsearchonline]

Kushal Singh Thanks Kushal. Glad we could help. :)

[@sukomalmishra1482]

hi sir, we are running a photo video and audio(V.O.) business on the name of Aawaaz Studio Media Production. We are a sole proprietorship concern(with current account and pan no.) please help ..we are worried about gst and ss codes. how can we register in GST.

[@zinkasingh2031]

nice Details

[@vakilsearchonline]

Thanks a lot! If you have any questions, please feel free to post them here and our experts would be glad to answer them.

[@mousaali3632]

Thank you very much for the important info you are sharing.
I would like to ask you, if I am a foreigner (Not from India) and I would like to start a service based business company in India but running in another country (the service) What kind of companies do i need to establish? do I need an India partner? how easy to startup?
Thank you

[@csshahbazkhan2752]

if any query
plz, contact - 8982766623

[@prawincbe]

excellent video... upto the point

[@vakilsearchonline]

Thanks a lot Prawin. If you have any questions, our experts would be glad to answer them.

[@ShahameedaliAgni]

thank you very much nice video

[@akvijay84]

Hi, one query pls... Iam planning for startup which is about 10 lakh investment and we are two partners... if we start initially with partnership registration and then in future can we have option in converting our partnership business in to Pvt ltd?

[@vakilsearchonline]

Yes, you can covert your Partnership Firm to a Private Limited Company in the future.
You can reach out to us on WhatsApp at [phone] or email us at [e-mail] for assistance or visit our site: vakilsearch.com/partnership-firm

[@qasimansari6647]

Nice

[@ravishankar8101]

can i change proprietorship company to llb or pvt ltd, and can anyone suggest me how to get tin no, i need that to start my ecommerce business

[@vakilsearchonline]

Hi Ravi. Apologies for late revert. You can change your proprietorship to Pvt Ltd and LLP. Drop an email to [e-mail] and we'll definitely help you out. All the best for your ecommerce venture!

[@darshanm140]

Thanks sir

[@meeshaileshmk]

Thanks .. imp info :)

[@vakilsearchonline]

Shailesh m k Glad we could help.. :)

[@somnathgund5698]

Hindi me streaming kro ....

[@sunilbhar]

I have registered a Private limited company by name of Cepek Media Private Limited. Can I start an e-commerce with different name as this name is not available for domain registration?

[@kamaljain4814]

Yes you can

[@SKtheGEEK]

so can i change to plc from llc in future?

[@vakilsearchonline]

Please WhatsApp us at [phone] for free legal advice.

[@shameakhicks7598]

I wonder how far my ambition/ motivation will take me. . .#LoveVsHate2k16

[@baradapattanayak6157]

Suppose I register LLP or Pvt Ltd in Bangalore, Karnataka. Can I get VAT/TIN in Bhubaneswar, Odisha?

[@prof-bussolutionsllp204]

yes you can do so . Please call us on 7838840547,8439942519 or mail us on [e-mail] or visit our website www.prof-bussolutions.com . We will help you to register your Vat.

[@SureshKarthikeyanK]

useful

[@kanakagrawal5508]

nice .. thnx =)

[@ananthsozhan]

2 good

[@vakilsearchonline]

Ananth Sozhan Thank you.. :)

[@mmanjitkumar1674]

My business is propritorship how to move Pvt Ltd business

[@vakilsearchonline]

Please refer to this link - vakilsearch.com/convert-your-sole-proprietorship-into-a-private-limited-company. You can also reach out to us on WhatsApp at [phone] or email us at [e-mail] for help.

[@sandeep-h9n]

sir i want to starting selling as e retailer on amazon i m 19 now does i requred vat num , cst tin num

[@onebitstory]

can a single individual make a llp ?

[@sandeep1986ization]

Lazy Guy No

[@csshahbazkhan2752]

if any query
plz, contact - 8982766623

[@phanigurram]

What is the fees to talk with you

[@vakilsearchonline]

Hi Phani Gurram, thanks for your interest with Vakilsearch. For any queries, please feel free to write to [e-mail] or Whatsapp us at 7200365365. Our representatives will help you.

[@gunamaldives8424]

Gd sir,how I can Mt it's foundation for have any contact numbers,i saw in net....but those numbers are not working so can I have ur numbers pls,bcoz I should own a company in India....like........ international Pvt Ltd company so help us practicalway....pls

[@prof-bussolutionsllp204]

Please call us on 7838840547,8439942519 or mail us on [e-mail] or visit our website www.prof-bussolutions.com . We will help you to register your partnership firm.

[@makineedidorababu3329]

Name registration is enough for proprietary ship?

[@vakilsearchonline]

Depending on the nature of your business, you may also need Shops & Establishments or GST registration etc. If you need more info, you can also reach out to us on WhatsApp at [phone].

[@taxaconsultant5195]

I want to open pvt ltd company

[@vakilsearchonline]

You can reach out to us on WhatsApp at [phone] or email us at [e-mail] for assistance. You will also get more info in this link as well; vakilsearch.com/company-registration.

[@Sumer-zt5cu]

Muje vakilserch kaa number chahiye

[@vakilsearchonline]

You can reach out to us on WhatsApp at [phone] or email us at [e-mail] for assistance.

[@MixMate22]

not explaining well......only bak bak

[@sanjeevrajput7257]

Sir Hindi me video banao

[@vakilsearchonline]

Hi Sanjeev Kumar, thanks for your feedback. We will consider it. Please write to support@vakilsearch for any concerns.

[@vksheyad]

Nice Video