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Private Limited vs LLP: which should you register?
June 1, 2026
Both a Private Limited Company and an LLP give you limited liability and a separate legal identity. The right choice depends on funding plans and compliance appetite.
Funding
Investors and VCs almost always require a Private Limited Company because equity shares are easy to issue and transfer. An LLP cannot issue equity.
Compliance
An LLP has lighter annual compliance (Form 8 and Form 11) than a company (AOC-4, MGT-7, board meetings). If you do not plan to raise equity, an LLP is cheaper to maintain.
Bottom line
Raising funding? Go Private Limited. Bootstrapped professional firm? An LLP is often enough.