Choosing the Optimal Corporate Vehicle
Selecting between a Private Limited Company and a Limited Liability Partnership (LLP) is one of the foundational decisions every entrepreneur faces. Both provide limited liability protection but differ significantly in statutory governance, taxation, and scalability.
Comparative Highlights:
| Parameter | Private Limited | LLP |
|---|---|---|
| Statutory Audit | Mandatory every year regardless of turnover | Mandatory only if Turnover > ₹40 Lakh or Capital > ₹25 Lakh |
| Corporate Tax Rate | 22% (Sec 115BAA) + Surcharge | 30% + Surcharge & Cess |
| FDI & Equity Funding | Seamless issuance of shares / CCPS | Restricted equity instruments |
At N K Panda & Co., we guide startups through company incorporation, ROC filings, and structuring advisory.
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