A line-by-line cost comparison of Private Limited Company and LLP registration in India — incorporation fees, DSC, stamp duty, and the annual compliance cost that most founders forget to budget for.
LLP registration is cheaper both to start (from ₹5,999 with Taxpex) and to maintain. Private limited registration starts at ₹6,999 and carries higher annual compliance, but it is the only structure institutional investors will fund.
| Item | Private Limited | LLP |
|---|---|---|
| Taxpex professional fee | From ₹6,999 | From ₹5,999 |
| MCA form filing | SPICe+ (INC-32) | FiLLiP |
| Name reservation | Included in SPICe+ (or RUN ₹1,000) | Included in FiLLiP (or RUN-LLP ₹200) |
| DSC | ₹1,200–₹2,000 per director | ₹1,200–₹2,000 per partner |
| Stamp duty on MOA/AOA or agreement | State-dependent | State-dependent, usually lower |
| PAN + TAN | Included with incorporation | Included with incorporation |
| Typical all-in first cost | ₹9,000–₹14,000 | ₹7,500–₹11,000 |
The headline difference at setup is small. The difference that actually matters shows up every year afterwards.
| Annual obligation | Private Limited | LLP |
|---|---|---|
| Annual return | MGT-7 / MGT-7A | Form 11 |
| Financial statements | AOC-4 | Form 8 |
| Statutory audit | Mandatory from day one | Only above ₹40 lakh turnover or ₹25 lakh capital |
| Board meetings | Minimum 4 per year, minuted | Not required |
| Director / partner KYC | DIR-3 KYC annually | DIR-3 KYC annually |
| Typical annual professional cost | ₹15,000–₹35,000 | ₹8,000–₹15,000 |
LLP annual filings are due even for a dormant LLP with zero turnover, and the late fee is ₹100 per day per form with no upper cap for older filings. A forgotten LLP is an expensive LLP.
Converting an LLP to a private limited later is possible but costs more than starting as a company. If a funding round is likely within 18 months, start as a private limited.
| Structure | Setup | Annual (x5) | 5-year total |
|---|---|---|---|
| Private limited | ₹11,000 | ₹25,000 | ₹1,36,000 |
| LLP | ₹9,000 | ₹12,000 | ₹69,000 |
These are typical mid-range figures for a small business in a metro. Actual stamp duty and audit fees vary by state and turnover.
Senior contributor at Taxpex Consultancy. Reviewed by a practising Chartered Accountant. Published on 19 September 2026 · Updated on 19 September 2026.
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