Dear Sir
LLP DOES HAVE AN EDGE OVER PVT. LTD. IN TERMS OF COST BUT THERE ARE A LOT MORE DRAWBACKS WHICH MAKE LLP EXPENSIVE IN TERMS OF ITS OPPORTUNITY COST. A PVT. LTD. COMPANY CAN HAVE 50 MEMBERS EXCLUDING ITS EMPLOYEES AND PAST EMPLOYEES WHILE AN LLP CAN HAVE LIMITED PARTNERS. A COMPANY HAVE A HIGHER CREDITWORTHINESS WHICH MAKES IT MORE ATTRACTIVE FOR BOTH THE SUPPLIERS AND THE CUSTOMERS. THERE ARE NO GREATER TAX BENEFITS IN INCOME TAX ACT FOR AN LLP THAN A COMPANY. IF YOU PLAN TO TAKEOVER YOUR LLP IN THE NEW COMPANY, THEN WHAT IS THE BENEFIT OF DOING SO, FIRST SPENDING MONEY IN INCORPORATINF LLP, THEN HAVING AN AGREEMENT FOR TAKEOVER AND THEN PAYING FEE FOR COMPANY INCORPORATION. IF YOU DREAM BIG YOU SHALL GET BIG.
FROM MY POINT OF VIEW THERE ARE NO LESS FORMALITIES, YOU HAVE TO PREPARE ANNUAL STATEMENTS, YOU HAVE TO ACQUIRE DPIN, DIGITAL SIGNATURES. ONLY FILING CERTAIN ADDITIONAL RESOLUTIONS IS WHAT WOULD HAVE TO DO ADDITIONALLY.
ALSO YOU CAN'T ACQUIRE A PROPERTY IN THE NAME OF LLP. YOU HAVE TO DO IT IN THE NAME OF A PARTNER AND IN CASE OF DIFFERENCES BETWEEN THE PARTNERS IT WOULD CREATE PROBLEMS. HOWEVER IN A PVT. LTD. COMPANY YOU HAVE A CONTROL EQUAL TO THE NUMBER OF SHARES YOU POSSESS. ALSO THERE ARE POSSIBILITIES OF DIFFERENTIAL RIGHTS.