POA 1.2

• Sole Proprietorship (SP) is owned by one person who contributes capital.
• Limited Liability Partnership (LLP) involves 2 or more partners where each partner contributes capital.
• Private Limited Company (PLC) has 50 or less shareholders where each investor buys shares and contributes capital.
• Banks/lenders are less likely to lend money to a Sole Proprietorship (SP) due to lack of assets to serve as collaterals.
• Banks/lenders are more likely to lend money to a Limited Liability Partnership (LLP) as there are more assets from partners to serve as collaterals.
• Banks/lenders are more likely to lend money to a Private Limited Company (PLC) as there are more business assets of high value to serve as collaterals.
• In a Sole Proprietorship (SP), the owner is obliged to pay debts using personal assets.
• In a Limited Liability Partnership (LLP), a partner who incurs debts/losses due to his wrongful actions is obliged to pay using his personal assets. Other partners are not affected
• In a Private Limited Company (PLC), shareholders will only need to forfeit their investments in the company if the company goes bankrupt.
• In a Sole Proprietorship (SP), the owner runs the business and has absolute control.
• In a Limited Liability Partnership (LLP), control over business is shared among the partners with at least one partner heavily involved in running the business.
• In a Private Limited Company (PLC), shareholders have no control unless they are part of management team.
• A Sole Proprietorship (SP) exists as long as the owner is alive and desires to continue operation.
• A Limited Liability Partnership (LLP) exists forever until wound up or strike off.
• In a Sole Proprietorship (SP), the owner can easily update the particulars of the new owner to notify corporate regulatory authority.
• In a Limited Liability Partnership (LLP), all partners need to agree to the addition or withdrawal of partner(s).
• In a Private Limited Company (PLC), shareholders can pay a stamp duty to give their shares to another person or organization.
• Sole proprietorship has minimal administrative duties to adhere to
• Limited Liability Partnership has few regulatory duties to comply with. However one of the partners need to submit annual declaration stating whether it is able to pay its debts during the normal course of business.
• Private limited company must comply with statutory requirements for general meetings, directors etc. and file its annual financial reports