
An exciting step to start with a business is one thing, but the legal structure to operate under is one of the most crucial decisions that you will ever make. The kind of structure you adopt has direct effect on your business growth, responsibilities under laws, taxation as well as your future capacity of raising funds. That is the reason why LLP vs Private Limited Company is a major confusion in India among various entrepreneurs.
The most popular types of business in India are the LLP (Limited Liability Partnership) and the Private Limited Company. They have advantages such as the protection of limited liability and separate legal identity in which your personal assets will not be at risk. Nevertheless, their similarities notwithstanding, they are highly different in terms of compliance requirements, ownership structure, fundraising opportunities, scalability, and perception of the business.
For example, in case of the small businesses and professionals, LLP is more convenient due to the flexibility and low compliance whereas a private limited company is better suited for small startups and growing business to raise investment and credibility in the market.
Continue reading “LLP vs Private Limited Company – Which is Better in India?”

