| Private limited company | LLP | One Person Company | |
|---|---|---|---|
| Owners | 2 to 200 shareholders | 2 or more partners | 1 shareholder + nominee |
| Liability | Limited | Limited | Limited |
| Equity funding | Easy | Difficult | Not suitable |
| Audit | Always mandatory | Only above thresholds | Always mandatory |
| Annual compliance | Higher | Lower | Moderate |
| Best for | Startups raising money, growing businesses | Professional firms, family and partner businesses | Solo founders |
Choose a private limited company if
- You plan to raise money from investors or issue ESOPs.
- You want maximum credibility with customers, banks and large buyers.
- You expect to add shareholders over time.
Choose an LLP if
- The business is owned and run by partners who share profits.
- You want limited liability with fewer compliances and no mandatory audit until thresholds are crossed.
Choose an OPC if
- You are a solo founder and want limited liability and a company structure.
- You may later add partners or investors and convert to a private limited company.
What about a partnership or proprietorship?
They are cheaper to start but offer no limited liability — your personal assets are exposed to business debts.
This guide explains the general position in India. Fees and rules change; your facts may change the answer. Speak to us before acting on it.