Company vs LLP Decision Guide
Interactive 5-question quiz to choose between Private Limited Company and LLP — with detailed comparison of 10 parameters including tax rates, compliance, ESOPs, and FDI.
Answer 5 questions to get a recommendation tailored to your situation.
Will you be raising venture capital (VC) or institutional investment?
VCs can only invest in companies (Pvt Ltd/Ltd), not LLPs. SEBI-registered funds are legally restricted.
Is liability protection critical for your business (high litigation risk, consumer facing, manufacturing)?
Both offer limited liability, but LLP partners' liability is unlimited for their own wrongful acts. Both protect against business debts up to contribution.
Do you plan to give ESOPs (Employee Stock Options) to attract talent?
ESOPs are only available in companies (Pvt Ltd/Ltd), regulated under SEBI/Companies Act. LLPs cannot issue ESOPs.
Is minimising ROC compliance burden a priority for you?
LLPs have fewer mandatory filings: 2 annual returns vs 5+ for Pvt Ltd. No annual audit unless turnover >₹40L or contribution >₹25L.
Is your expected profit this year above ₹1 crore?
At high profits, LLP taxation (30% flat + surcharge) can be higher than Pvt Ltd (22% under Section 115BAA, plus dividend tax). Structure matters at scale.
For general guidance only. Consult your CA for advice specific to your situation.