Choosing between a Private Limited Company and a Limited Liability Partnership (LLP) is crucial when starting a business.
Private Limited Company
- Separate legal entity
- Suitable for businesses looking to raise funding
- Mandatory statutory audits, annual filings
- Better credibility with investors
LLP (Limited Liability Partnership)
- Hybrid of partnership and company
- Lesser compliance than Pvt Ltd
- No mandatory audit unless turnover > ₹40 lakhs
- Ideal for professional firms and small businesses
| Feature | Pvt Ltd Company | LLP |
|---|---|---|
| Legal Status | Separate Entity | Separate Entity |
| Minimum Members | 2 | 2 |
| Audit Requirement | Mandatory | Only if criteria met |
| Name Suffix | Pvt. Ltd | LLP |
| Fundraising | Easier (VCs, equity) | Limited options |
