Company Incorporation for Startups — Pvt Ltd & LLP

Private Limited vs LLP: Which Structure is Right for You?

Private Limited Companies are the preferred structure for startups planning to raise venture capital funding. They offer perpetual succession, easy transfer of shares, limited liability protection, and are eligible for ESOP schemes. Pvt Ltd companies can have up to 200 shareholders and are governed by the Companies Act, 2013. Investors typically prefer this structure due to clear ownership division through equity shares.

Limited Liability Partnerships (LLPs) combine the flexibility of partnerships with limited liability protection. They’re ideal for professional services firms, consulting startups, and businesses with 2-3 partners who want operational flexibility. LLPs have lower compliance requirements, no mandatory audit requirement for turnover below ₹40 lakhs, and simpler profit-sharing structures. However, raising VC funding is more complex in an LLP structure, and converting to Pvt Ltd later involves significant effort.

Required Documents for Company Registration

For Private Limited Company registration, you need PAN cards and Aadhaar cards of all directors and shareholders, recent passport-size photographs, address proof (utility bills less than 2 months old), and rental agreement or NOC for registered office. Directors must obtain Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) before incorporation.

LLP registration requires PAN and Aadhaar of all designated partners, passport photographs, address proofs, registered office documents, and partnership deed outlining profit-sharing ratios and partner responsibilities. Partners need Designated Partner Identification Numbers (DPIN) and DSCs. Foreign nationals can be partners/directors but require additional documentation including passport copies and address proof from their home country.

Company Registration Timeline and Process

The incorporation process typically takes 7-14 working days if all documents are in order. First, CAs check name availability through the MCA portal and file the RUN (Reserve Unique Name) application. Once the name is approved (usually 2-3 days), they prepare the Memorandum of Association (MOA) and Articles of Association (AOA), obtain DSCs and DINs/DPINs, and file incorporation forms (SPICe+ for companies, FiLLiP for LLPs).

After MCA approval, you receive the Certificate of Incorporation with CIN (Corporate Identification Number) or LLPIN. CAs then file for PAN and TAN allotment, open a current bank account, and ensure GST registration if required. Post-incorporation compliance includes appointing an auditor within 30 days (for Pvt Ltd), filing DIR-3 KYC annually, conducting first board meeting within 30 days, and maintaining statutory registers.

Our Company Incorporation Deliverables