LLP vs Private Limited Company:
What’s Right for You?

Choosing the right structure for your business is more than just paperwork — it’s a strategic decision that affects compliance, control, scalability, and your long-term goals.

Here’s a simplified comparison to help you make the right choice:

Basis

  • Governing Law
  • Registration Authority
  • Legal Status
  • Contact form setup
  • Minimum Members



  • Maximum Members

  • Compliance Burden

  • Audit Requirement


  • Foreign Ownership

  • Annual Filing

LLP

  • LLP Act, 2008
  • Ministry of Corporate Affairs (MCA)
  • Separate legal entity
  • Designated Partners/Partners
  • 2 Designated Partners



  • No limit on partners

  • Comparatively less

  • Mandatory only if turnover > ₹40 lakh or contribution > ₹25 lakh

  • Allowed under FDI (approval/automatic route based on activity)
  • Form 8 (Statement of Account), Form 11 (Annual Return)

Company

  • Companies Act, 2013
  • Ministry of Corporate Affairs (MCA)
  • Separate legal entity
  • Shareholders
  • Private Limited Company: 2 Shareholders and 2 Directors
    Public Company: 3 Directors and7 shareholders
  • For Private Company: 200 shareholders
    For Public Company: No Limit
  • Higher compliance (Board meetings, AGMs, filings, etc.)
  • Mandatory irrespective of turnover


  • Allowed under FDI (approval/automatic route based on activity)
  • AOC-4 and MGT-7/MGT-7A

Which One Should You Choose?

Opt for LLP if:

You’re a small or mid-sized firm in the professional services sector, prefer flexibility, want operational ease, and lower compliance costs.


Opt for Private Limited Company if:


You plan to scale, raise external funding, or require a formal structure with defined roles, responsibilities, and governance protocols. 

 

Setting up Your Company in India

Private Limited Company
Incorporation

At SPN Legal, our Corporate Law team ensures your company gets the right start with a fully compliant and streamlined incorporation process.

Set Up a Private Limited Company in India with Foreign Investment

At SPN Legal, we offer comprehensive legal support for foreign promoters and investors looking to establish a compliant and operational business entity in India.

DPIIT Startup Registration

At SPN Legal, we assist clients across every stage of Startup Registration, ensuring regulatory compliance,
speed, and clarity.

New Delhi

A-177 and A-380,
Defence Colony,
New Delhi - 110024


New Delhi

Chamber Number 388,
Block II, Delhi High Court,
Sher Shah Road,
New Delhi - 110503
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Bangalore
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    Opp Commissioner of Police Office, Bengaluru - 560001
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