Liability, compliance, funding, and tax — a side-by-side look to help you pick the right entity.
Two of the most popular structures for Indian startups and small businesses are the Private Limited Company and the Limited Liability Partnership (LLP). Each suits different goals.
Private Limited Company
- Best for raising equity funding from investors.
- Limited liability and a separate legal identity.
- Higher compliance: board meetings, annual filings (AOC-4, MGT-7), and audits.
LLP
- Lower compliance and cost than a company.
- Limited liability with partnership flexibility.
- Less attractive to equity investors.
If you plan to raise venture capital, a Private Limited Company is usually the answer. If you want a lean, professional partnership, an LLP may fit better.
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