What is the difference between an LLP and a Pvt Ltd?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerAn LLP has lighter compliance and pass-through-style taxation but can’t easily raise equity or issue ESOPs; a Private Limited company is investor-friendly (VCs invest in shares, ESOPs work, startup benefits apply) but has more compliance. Choose LLP for a bootstrapped business, Pvt Ltd if you’ll raise funding.

LLP: lighter, but no equity raising

Fewer filings, audit only above thresholds, but investors don’t fund LLPs and there are no shares for ESOPs.

Pvt Ltd: investor-ready

Equity, ESOPs and DPIIT/80-IAC benefits, at the cost of more compliance. See LLP advantages.

NRI Taxation

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This answer is general information for NRIs, not tax advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.