A Private Limited Company is the most preferred form of business for Startup India, It is easy to incorporate and manage. Angel investor and any other long-term investor insist on a Company for making the investment. Further options for issuing ESOP is available in a company.
Limited Liability Partnership is an advancement over the traditional partnership firms, with some characteristic features of a company, the limited liability. The process of incorporation of the LLP is complicated and at the same time, it lacks the potential to grow and is not preferred for funding.