Choosing the right business structure is one of the most important decisions for any entrepreneur. In India, the two most popular forms are Private Limited Company and LLP. Here is a complete guide for 2025.
Private Limited Company vs LLP — Key Differences
Private Limited Company
- Separate legal entity with perpetual succession
- Easy to raise funding from investors and VCs
- Minimum 2 directors, maximum 200 shareholders
- Higher compliance burden
- Governed by Companies Act, 2013
Limited Liability Partnership (LLP)
- Hybrid of company and partnership structures
- Lower compliance requirement than Pvt Ltd
- Minimum 2 designated partners required
- Cannot issue equity shares to investors
- Governed by LLP Act, 2008
Step-by-Step Incorporation Process
Step 1 — DSC: All proposed directors must obtain a Class 3 Digital Signature Certificate from authorised certifying authorities.
Step 2 — Name Reservation (RUN): Apply through the RUN (Reserve Unique Name) facility on MCA portal. The name must be unique and not similar to existing companies or trademarks.
Step 3 — File SPICe+ Form: The integrated SPICe+ form covers incorporation, DIN allotment, PAN, TAN and other registrations in one application.
Step 4 — Certificate of Incorporation: The ROC processes the application and issues the Certificate of Incorporation (CoI) with CIN within 7–15 working days.
Post-Incorporation: Open a current bank account, apply for GST registration and start operations. We assist with all post-incorporation steps.
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