Starting a business enterprise in India calls for many decisions. One such fundamental decision is whether to register your enterprise as a Limited Liability Partnership (LLP) or a Private Limited Company. Basically, it is a question about what structure your business ought to follow so as to reap maximum benefits without shouldering excess legal requirements. While both LLP and Private Limited Companies share many similarities, they also differ on several counts.

By understanding the main differences between an LLP and a Private Limited Company, you will be in a better position to determine which one is more suitable for your enterprise. Let us take a look.

💡 Are you looking for Coworking space in Gurgaon, Noida or Delhi?. We are just a call away.
Call now: 08999 828282

What is a Private Limited Company?

A Private Limited Company refers to a business structure where the ownership lies with the shareholders. The company functions as an independent legal entity with the rights to buy, own, and sell the property as well as to extend loans for the purpose of business. The legal existence of a Private Limited Company is independent of its members or any changes in the holding of the shareholders.

The liability of the shareholders is limited to the shares they own. Such members can’t be held responsible for any of the debts incurred by the company. Their personal assets can’t be seized by a court of law to repay company debts.

What is a Limited Liability Partnership (LLP)?

A Limited Liability Partnership extends the benefits of the partnership while upholding the limited liability advantages of a company. Similar to a Private Limited Company, an LLP is also an independent legal entity. They too have the right to purchase properties and can incur debts.

An important characteristic of LLP is that one partner can’t be held responsible for the negligence or misconduct of another partner. In other words, partners have limited liability which depends on their agreed contribution as per the LLP agreement.

Differences between a Private Limited Company and an LLP

LLPs and Private Limited Companies differ from each other in a number of aspects, ranging from governing laws to tax structure to legal compliance, and more. Listed below are some of the key differences between both:

• Governing law

Private Limited Companies function as per the Companies Act, 2013. LLPs functions as per the Limited Liability Partnership Act, 2008.

• Formation Requirements

For a Private Limited Company’s incorporation, you need at least two stakeholders and two members. Such a company can have at most 15 directors and 200 members.

In the case of the LLPs, the required number of members and designated partners stand at two in each case. However, there is no limit to the maximum number of members.

💡 Are you looking for Coworking space in Gurgaon, Noida or Delhi?. We are just a call away.
Call now: 08999 828282

• Registration Cost

The cost of registering a Private Limited Company is higher than that required for LLP. This is because LLPs are designed to cater to small businesses. As such, the government has set a lower registration cost for them.

• Tax Structure

Private Limited Companies have to pay tax based on the income of the company. They also need to shoulder other taxes, such as dividend distribution tax as well as an alternate minimum tax.

The taxation process of LLPs involves just two taxes – one is the income tax and the other is the alternate minimum tax.

• Transfer of Share

In a Private Limited Company, you can easily transfer your shares to another shareholder. But in an LLP, such transfers have to follow the guidelines of the LLP agreement.

Also Read: Top 10 Pain Areas of a Small Company

• Annual filing

Private Limited Companies need to audit their accounts every year and file the report with the Ministry of Corporate Affairs (MCA).

LLPs do not have to audit their accounts unless their annual turnover is more than 40 lakh rupees.

• Foreign ownership

Foreigners can invest in Private Limited companies operating under most sectors in India.

But that is not the case for LLPs. Foreigners can invest in an LLP in India only after they obtain permission for the same from the Foreign Investment Promotion Board (FIPB) and the Reserve Bank of India (RBI).

• Survivability or existence

The existence of a Private Limited Company does not depend on the shareholders or the directors. Such a company can be dissolved by Regulatory Authorities or it can also be done voluntarily.

The existence of an LLP is independent of the partners. Such an entity can be dissolved either by the Company Law Board’s order or can be done voluntarily.

💡 Are you looking for Coworking space in Gurgaon, Noida or Delhi?. We are just a call away.
Call now: 08999 828282

In conclusion:

Despite the differences, these entities share some similarities too. For instance, both LLPs and Private Limited Companies are required to be registered with the Ministry of Corporate Affairs. For this, your company needs an address. Buying or renting a traditional office in the initial stages of your business can be an extra financial burden. Coworking spaces like The Office Pass (TOP) can help you by providing an address for registration and also a well-equipped place to work out of.

Before you come to a decision regarding which business structure is ideal for your enterprise, make sure to consider your long-term goals and how you would like to take the company forward. This will help you to decide whether you ought to register your enterprise as a Private Limited Company or an LLP.

BOOK A COWORKING TOUR

Brand awareness – the extent to which customers can relate to a company by its name – is a crucial factor that contributes to business growth. The more your customers can identify and distinguish your products and services from those of your competitors, the better your sales will be.

Creating brand awareness is vital for the growth and sustenance of all brands, and even more so if you are a start-up. That’s why you need to concentrate on building brand awareness right from the nascent stage of your business through the right channels.

In this digital era where social media double as business platforms, you must take special care to tap into their power and popularity. Needless to say, it is an easy means to reach out to a large audience and make them aware of your business in a cost-efficient manner. Are you planning to create a social media strategy for your brand? For a startup company, it can be a bit difficult to start from scratch and slowly build a social media presence, but with these tips, your job becomes much more simple.

6 Essential Social Media Tips for Startups To Create Brand Awareness

Here are 6 useful social media tips that will surely help you to create brand awareness for your start-up

• Identify your target audience
• Identify the right social media platforms for your brand
• Create unique and valuable content
• Engage with your audience actively
• Team up with influencers
• Use a combination of promotional techniques

1. Identify your target audience

Today, there are 3.8 billion social media users in the world and, this, by no means, is a small number. It is more than half of the global population! However, not everyone in this 3.8 billion is your potential customer, so creating a generic strategy will be counterproductive. That’s why you must take special care to identify the segment of people to whom your business caters.

The best way to go about it is to ask some fundamental questions about your business as well as its consumers. Does your target audience comprise of teenagers? Are you aiming to target people in the age group of 40 and above? Is your business trying to become a B2C brand? Does your product/service target businesses rather than end-users?

Once you have a clear idea about your target audience, you can create a smart and actionable social media strategy for brand awareness.

2. Identify the right social media platforms for your brand

Every social media platform has a specific category of users, and each demands a particular type of content. To establish your brand’s presence through social media, you need to pick the right platforms. For instance, if your business deals in FMCG products, platforms like YouTube, Facebook, Twitter, and Instagram will work well. For B2B businesses, platforms like Facebook and LinkedIn may be the ideal choices.

You also need to focus on the type of content you will produce. If you want to promote your brand through image and short video-based content, Instagram will be a great choice. For lengthy videos, YouTube may be a better option. Identifying the right platforms will enable you to optimize your campaigns and efforts.

3. Create unique and valuable content

Content is king and there are no two ways about it. Regardless of which social media platform you choose for propagating your brand identity, you need to create content that offers value to your audience. Based on the type of platform, you can create textual, visual, or video content or a combination of all.

When you share fresh and informative content, you develop a relationship of trust and authority with your viewers. This, in turn, helps your viewers to think about your brand in a positive light. Over a period of time, you can build a loyal customer base if you continue posting unique and useful content consistently.

Also Read: 6 Successful Marketing Strategies For Early & Growth Stage B2B Startups

4. Engage with your audience actively

The whole point of creating brand awareness is to make people talk about your brand and increase its recall value. To do that, you have to interact with your audience. It is not enough to publish content and then forget about it. The fundamental rule of social media is to be social. So, you have to take stock of how your viewers are responding to your content and respond accordingly.

In other words, you must actively respond to their comments, compliments, queries, and feedback. You must also show gestures to appreciate their ‘likes’, ‘retweets’, and ‘reposts’. Further, encourage your viewers to share your posts. By doing all these, you will be able to build a brand connection with your viewers and spread the word about your business.

5. Team up with influencers

Influencer marketing is a good idea when it comes to boosting your brand awareness efforts. Social media influencers are people with huge followings and the ability to mold opinions through their recommendations. Followers connect with influences on a personal level, which helps your brand gain trust and authenticity.

Find one or more influencers with followers that align with your target audience. For instance, a brand selling cosmetics must look for influences in that particular niche, while a technology company will find the perfect match for their brand in tech bloggers. By partnering with such influencers, you can leverage their content-creating skills as well as viewers on social media to highlight your brand.

6. Use a combination of promotional techniques

When using social media to create brand awareness, it is also important to use a combination of techniques to promote your brand and reward customers. Using hashtags, fostering meaningful conversation by creating groups, boosting popular posts, etc. will help take you a long way in attracting and retaining followers.

In addition to this, try and come up with programs to incentivize your followers.

For instance, you can hold contests that help expand your brand’s reach. Don’t hesitate to be creative when you design and conduct contests. Referral programs are also a great way to encourage customers to share your content and bring more followers.

In Conclusion:

When it comes to creating brand awareness, social media trump all over platforms. While you are at this task, do not forget to evaluate your performance regularly. Once you start tracking your progress, you will be able to realize what works for your brand and what doesn’t and rework your strategies for better viewer engagement.

BOOK A COWORKING TOUR

Productivity is a catchphrase used in all organizations, both big and small. It refers to the efficiency of employees in achieving the objectives and goals of the organization. You must strive to increase employee productivity as it helps bring down costs and attain better results and growth. In other words, employee productivity has a direct impact on the success of your company.

However, increasing employee productivity often proves to be a big challenge for many organizations. It’s not easy to get every employee on the same page since they have different temperaments, roles, and targets. That said, you can certainly use some organization-wide strategies to increase the overall productivity of your workforce.

8 Simple ways to increase employee productivity in the workplace

In order to increase employee productivity in the workplace, you can implement these 8 changes in your organization to boost employee productivity as mentioned below:

1. Set realistic goals and deadlines
2. Communicate clearly and effectively
3. Delegate responsibilities
4. Offer flexible work arrangements
5. Encourage creativity and innovation
6. Focus on training and development
7. Reward your employees
8. Offer the right tools and equipment

1. Set realistic goals and deadlines

It is important to have a good idea about the skills of your employees to maximize their productivity. When you know how talented your employees are, you can match tasks to skills. It will also allow you to set realistic goals and offer employees a better chance to complete the tasks efficiently and within deadlines.

Speaking of deadlines, it is also vital to set realistic targets so that employees get sufficient time to complete the given tasks. If you are inclined towards setting challenging timelines, make sure that they are achievable.

2. Communicate clearly and effectively

Your organization can have a better shot at increased employee productivity when there is clear communication between employees and managers. Employees can perform better when they have a clear idea about the responsibilities they have to shoulder and the goals they should achieve.

It is a good idea to have platforms where managers can interact regularly with their team members, share challenges/feedback, and brainstorm solutions. This can make employees feel unified with the organization’s goals and foster job satisfaction, leading to efficiency in work. Additionally, create multiple channels within the organization to communicate relevant updates and information in a timely manner.

3. Delegate responsibilities

More often than not, organizations are not open to the idea of delegating responsibilities beyond the top level of management. Believe it or not, this is one step that can do wonders when it comes to improving employee productivity.

When you delegate responsibilities to proficient employees with proven track records in their line of work, you provide them the opportunity to gain leadership experience and skills. It often helps employees to derive a sense of achievement. As a result, they feel more motivated to perform better in order to justify the trust placed on them.

4. Offer flexible work arrangements

Flexible work arrangements have always been instrumental in increasing employee productivity. A study conducted by Zenefits has found that 78% of employees said flexible work arrangements made them more productive.

Now, when you talk of flexible work arrangements, you need to make sure that it is as distraction-free as possible. At the same time, it must provide your employees with all the necessary facilities for better engagement, smooth performance, and improved work results. A coworking space or a neighborhood office can fulfill all these conditions and help your employees concentrate on their work without feeling constrained.

5. Encourage creativity and innovation

When it’s a question of increasing employee productivity, encouraging creativity and innovation matters a lot. If you, as an organization, don’t welcome creative and innovative ideas, you may be unwittingly harming employee engagement and productivity.

By allowing your employees to be creative, you can help build their confidence and self-worth. This, in turn, can boost their productivity to a considerable extent. You can encourage innovation within the organization by creating a work culture where feasible ideas and suggestions from employees are accepted, implemented, and above all, rewarded.

6. Focus on training and development

Do not overlook the crucial role of training and development in increasing employee productivity. While some companies do away with training to save money and time, this can create an adverse impact on employee productivity as well.

You must focus on training and developing your employees to make them better equipped to face challenges and complete their duties with expertise. You also need to specify plans for employee development by stating how they can acquire the skills, such as through formal training, mentoring, workshop classes, etc.

Also Read: 5 Successful Companies that started in Coworking Spaces

7. Reward your employees

If you want your employees to be productive, you must give them reasons to be so – there are no two ways about that. This is where rewards, recognition, and other employee incentives come into play. Rewarding employees is one of the best and effective ways to keep increasing their productivity.

Make sure that your organization has a well-thought-out reward system in place. From public recognition, additional paid time off, and paid holidays to team dinners to handwritten notes, there are many ways you can reward and incentivize your employees.

8. Offer the right tools and equipment

Even the best and most talented resources you hire cannot unleash their productivity if you don’t support them with the right tools and equipment. That’s why you must pay special attention to equipping them with the latest tools that will help them perform their duties timely and efficiently.

Whether you are a start-up or an established organization, make sure to invest in systems, software, and other tools and devices that support your business operations. Keep upgrading such tools and equipment so that your workforce can keep up with the latest trends/developments in your industry.

Key Takeaways

Improving employee productivity requires persistent efforts on the part of the organization. However, in the long run, these efforts will help you enjoy better results. By providing employees a flexible work environment and following the tips mentioned above, you can drive them towards better performance.

If you are looking for a coworking space in Noida or South Delhi or Gurgaon that provides your employees with the right environment and tools needed to improve their productivity, check out TheOfficePass.

BOOK A COWORKING TOUR