Difference Between Private Limited And Llp In India – Corpzo

Choosing the right business structure is crucial for startups and entrepreneurs in India. Two popular options are Private Limited Company and Limited Liability Partnership (LLP). While both offer limited liability, they differ in several key aspects. Here’s a quick comparison by Corpzo to help you decide. ? Key Differences Legal Structure A Private Limited Company is governed by the Companies Act, 2013, while an LLP is regulated under the LLP Act, 2008. Ownership & Management In a Private Limited Company, shareholders and directors may differ. In an LLP, partners own and manage the business. Compliance Requirements Private Limited Companies have higher compliance (ROC filings, board meetings, audits), while LLPs enjoy simpler compliance with fewer filings. Funding & Investment Private Limited Companies are preferred for raising venture capital, while LLPs are ideal for professionals and small businesses. Taxation Both structures are taxed similarly, but LLPs are exempt from dividend distribution tax (DDT). ?? Corpzo Can Help Still unsure which structure suits your business? ?? Talk to Corpzo for expert guidance on company registration, legal setup, and compliance. Make the smart start today!