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Two of us are starting a packaged-snacks unit in Coimbatore. We expect to raise money from family in a year or two, maybe an investor later.
Which structure makes more sense, and what does the annual compliance look like for each?
LLP or private limited for a two-partner food business?
2 answers
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Answered by the Kuber Consultancy Services team
If outside investment is a real possibility, a private limited company is usually the better starting point: investors expect shares, and converting an LLP later costs time and fees.
Compliance, roughly:
- LLP — Form 11 (annual return) and Form 8 (statement of accounts), plus income-tax return. Audit only above ₹40 lakh turnover or ₹25 lakh contribution.
- Private limited — statutory audit every year, AOC-4 and MGT-7, board meetings, and the income-tax return.
The company costs more to run, but it keeps the investment door open.
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Worth adding: FSSAI licence is the same either way, so that should not drive the choice.
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