This is the simplest form of business where a single person owns and manages the business. The owner has unlimited liability and is personally responsible for all debts and liabilities of the business.
A partnership firm is a business owned by two or more persons who share profits and losses. Each partner has unlimited liability and is personally responsible for the debts and liabilities of the partnership.
An LLP is a hybrid form of partnership and a company. The partners have limited liability and are only responsible for the debts and liabilities of the business up to their agreed contribution.
Limited Liability Partnership (LLP)
A private limited company is a separate legal entity from its owners, and shareholders have limited liability. The number of shareholders is limited to 200, and shares cannot be traded publicly.