LLP vs Private Limited Company: Which is Right for You?
Compare liability, taxation, compliance cost and funding options.
Compliance
An LLP has lower compliance — no mandatory audit below ₹40 lakh turnover or ₹25 lakh contribution — while a Pvt Ltd needs an annual statutory audit.
Funding
Investors prefer Pvt Ltd companies because equity can be issued easily; LLPs cannot issue shares.
Tax
LLPs pay 30% plus surcharge, while companies can opt for 22% under Section 115BAA.