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Get started Learn moreA limited liability partnership blends the simple structure of a partnership with the limited liability of a company. It is a separate legal entity governed by the LLP Act, 2008. Partners are liable only to the extent of their agreed contribution, apart from cases of fraud or their own wrongful acts.
| Private Ltd | LLP | OPC | Partnership | Proprietorship | |
|---|---|---|---|---|---|
| Owners | 2 to 200 shareholders | 2 or more partners | 1 member plus nominee | 2 or more partners | 1 person |
| Separate legal entity | Yes | Yes | Yes | No | No |
| Owner liability | Limited to shares | Limited to contribution | Limited to shares | Unlimited | Unlimited |
| Raising equity | Easy | Limited | Limited | Limited | Not possible |
| Compliance load | Moderate to high | Moderate | Lower than Pvt Ltd | Low | Very low |
Yes, eligible private companies and partnership firms can convert, subject to conditions.
It can accept contributions, but venture funding is easier through a company.
Yes. If you do not draft one, default rules in the Act apply.
No. Profits are taxed in the LLP, and partners’ shares are not taxed again.
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