Two structures dominate company registration in India: the Private Limited Company (Pvt Ltd) and the Limited Liability Partnership (LLP). Both give you limited liability and a separate legal identity — but they suit different kinds of businesses. Here’s how to choose in 2026.
Quick answer
- Choose Private Limited if you want to raise investment, issue shares (ESOPs), or scale into a fundable startup.
- Choose LLP if you run a professional firm or small business and want limited liability with simpler, cheaper compliance.
Ownership & funding
A Private Limited Company has shareholders and can issue equity — which is exactly what angel investors and VCs invest in. An LLP has partners and cannot issue shares, so it’s rarely used by businesses seeking outside funding.
Compliance & cost
An LLP has lighter annual compliance: fewer mandatory filings and no statutory audit until turnover crosses the threshold. A Private Limited Company has more compliance (board meetings, ROC filings, statutory audit) — a worthwhile trade-off if you’re scaling.
Rule of thumb: funding ambitions → Private Limited. Simplicity and low cost → LLP.
Taxation
Both are taxed at corporate rates, but the details differ — for example, LLPs avoid dividend-related complexity since partners draw profit directly. Your CA can model the exact numbers for your turnover; we connect you with one if needed.
Liability protection
Both protect your personal assets — your liability is limited to your investment. This is the single biggest reason to register a company rather than run a sole proprietorship.
How registration works
Whichever you choose, the process is similar and fully online:
- Get Digital Signature Certificates (DSC) and Director Identification Numbers (DIN).
- Reserve your unique company name with the MCA.
- File incorporation documents (SPICe+ for Pvt Ltd, FiLLiP for LLP).
- Receive your Certificate of Incorporation, PAN and TAN.
- Open a current account and register for GST if needed.
Register your India company the easy way
Code Craft registers Private Limited Companies, LLPs, OPCs and more from ₹1,999 + government fee — DSC, DIN, name approval, filing and a dashboard to track it all.
Register in India →Frequently asked questions
Which is cheaper to maintain?
An LLP — it has fewer compliance requirements and no mandatory audit below the turnover threshold.
Can I convert an LLP to a Pvt Ltd later?
Yes, conversion is possible, though it’s simpler to choose the right structure from the start if you know you’ll raise funding.
Can a single person register?
Yes — a One Person Company (OPC) lets a solo founder enjoy limited liability without a partner.