OCTIS vs private limited company vs LLP in India

The rules that decide it: tax, audit, owners and what investors expect.

Last checked 9 November 2026 · 9 sources

Otty's short answer

Choose a private limited company if you plan to raise equity money, issue shares or offer employee stock options. Choose an LLP if you run a service or consulting business with a few partners and want lighter rules. A company can pay 22% tax under section 115BAA. An LLP pays a flat 30%. Both can be recognised as a startup by DPIIT.

Side by side

Swipe to see every column

What matters	OCTISHong Kong company + OCTIS global plan	Private limited company	LLP
Minimum owners	At least 1 shareholder, who can live anywhere	2 shareholders	2 partners
Minimum managers	At least 1 director, an individual, who can live anywhere	2 directors	2 designated partners
Resident requirement	No residency requirement for director or shareholder	1 director, 182 days	1 designated partner
Income tax rate	Profits tax 8.25% on the first HK$2 million, 16.5% above	22% under 115BAA	30% flat
Surcharge	Not needed for the Hong Kong company; local rules apply if you trade there	Flat 10% under 115BAA	12% above ₹1 crore
Health and education cess	Not needed for the Hong Kong company; local rules apply if you trade there	4%	4%
Alternate minimum tax	Not needed for the Hong Kong company; local rules apply if you trade there	None under 115BAA	18.5% of adjusted income
Statutory audit	Audited financial statements every year by an independent Hong Kong CPA firm, coordinated by OCTIS	Every year	Only above ₹40 lakh or ₹25 lakh
DPIIT startup recognition	Not needed for the Hong Kong company; local rules apply if you trade there	Yes	Yes
Section 80IAC tax holiday	Not needed for the Hong Kong company; local rules apply if you trade there	Yes, 3 of 10 years	Yes, 3 of 10 years
Government filing fee	At least 10% below any qualifying quote (Lowest Price Guarantee)	Zero up to ₹15 lakh capital	Check current fee

If you have staff, premises or local sales in this country, its own registration and tax rules still apply. OCTIS can help you arrange them.

Data sources & disclaimer: Comparison data was compiled from publicly available sources — including the competitors' own published pricing and feature pages — captured on 9 November 2026. Figures reflect the typical or advertised pricing at that time and may have changed since; plans, inclusions and prices vary by provider, region and promotion. OCTIS is independent and not affiliated with the named companies; all trademarks belong to their respective owners. This comparison is provided in good faith for general information only and is not professional, legal or financial advice — please verify current details with each provider before deciding.

Which one fits you

OCTIS · Hong Kong company + OCTIS global plan
Choose OCTIS if you sell in several countries and want a Hong Kong company with accounts, banking and CRM in one place.
Private limited company
Choose a private limited company if you expect outside investors, share options or a sale of the business. It is the structure investors expect.
LLP
Choose an LLP if you are a small service or professional firm, want flexible profit sharing between partners, and want a lighter audit rule.

What the table does not show

Tax is not as clear as the rates suggest

A domestic company pays 22% under section 115BAA, with a flat 10% surcharge and 4% cess, which is about 25.2% in total. An LLP pays 30%, plus a 12% surcharge above ₹1 crore of income, plus 4% cess, so about 31.2% below that line. The 115BAA option gives up certain exemptions and deductions. An LLP also faces alternate minimum tax of 18.5% of adjusted income. Ask a chartered accountant to model your own numbers.

Audit and paperwork

An LLP is exempt from audit if turnover is ₹40 lakh or less and contribution is ₹25 lakh or less, in the year. Above those lines the accounts must be audited, and the LLP's statement of account and solvency, Form 8, must be certified by the auditor. A company needs a statutory audit every year, whatever its size. That makes the LLP lighter at the start, and the company heavier but better known.

Raising money and switching later

A private company can issue equity shares, which is how most investors take a stake. An LLP cannot, and it relies on partner contributions and loans. If funding is even possible, many advisers say to incorporate as a company. You can convert between the two later, but a conversion costs time and fees, so decide with your three-year plan in mind. Both forms qualify for Startup India recognition.

Where OCTIS fits

OCTIS does not incorporate companies or file tax in India. If your Malaysian or Hong Kong company is choosing between an Indian company and an LLP for a subsidiary or a team in India, OCTIS can keep the parent's bookkeeping and tax in order and help you read consolidated numbers. Ask about 10–30% off your current bill.

See OCTIS pricing

Frequently asked questions

Is an LLP or a private limited company better for a startup?

If you plan to raise equity or give employees shares, a private limited company fits better. An LLP fits a small service firm with a few partners that wants lighter rules. Both can get DPIIT recognition and the section 80IAC three-year tax holiday if they qualify.

Do I need an Indian resident to start a private limited company?

Yes. A private company needs at least two directors and two shareholders, and at least one director who stays in India for 182 days in the financial year. For an LLP, at least two designated partners are needed and one must be resident in India.

How much tax does an LLP pay compared with a company?

An LLP pays a flat 30%, a 12% surcharge above ₹1 crore of income and 4% cess. A company opting for section 115BAA pays 22%, a flat 10% surcharge and 4% cess, with no alternate minimum tax. The company option gives up some deductions.

Does an LLP need a statutory audit?

Not always. An LLP does not need an audit if turnover is ₹40 lakh or less and contribution is ₹25 lakh or less. Partners may still choose an audit. A private limited company needs an audit every year.

Is there a government fee to register a private limited company?

The MCA says companies with authorised capital up to ₹15 lakh pay no SPICe+ filing fee, and only stamp duty applies, which varies by state. Above that, a capital-based SPICe+ fee applies, so check the current MCA fee table. Professional fees are extra and are not government fees.

Sources

Checked on the date above. Links open the provider's or regulator's own page.