What is LLC in India?

MB Posted by: Meera Bhattacharya
• 26 October, 2025
3 Reply

An LLC (limited Liability Company) is a business structure that provides legal protection to all of its owners. The number of the LLC members' liability is limited to their investments in the company. And if there is any loss to the company, like legal disputes, financial loss, or any business debts, then the personal assets of the company shareholders are protected. The LLC acts as a separate entity and does not take responsibility for its functions.

Tags : LLC, LLC in India

  • Bhavin Desai 31 October, 2025

    What are the characteristics of the Limited Liability Companies? 

    • VR
      Vikram Rao 02 November, 2025

      There are multiple characteristics of Limited Liability companies, which are given below: 

      • Limited liability company members are not responsible for any damage or loss to the company, which can be financial loss, business debt, or any legal issues. 
      • It has a pass-through taxation, which helps individuals to pass their profits and losses directly to their members, who are taxed as part of their actual income. 
      • For an LLC, you will need a minimum of documents to start a company without any strict rules, like regular meetings for tracking the records of day-to-day operations. 
      • In an LLC, you can easily transfer ownership, which provides a smooth entry and exit for the members. 
      • LLC protects the personal assets of the shareholders from any financial losses, debts, and legal issues. 

       

  • Rishi Ghosh 29 October, 2025

    Here are some of the different types of Limited Liability Companies in India. 

    • Private limited companies, companies are owned by individuals. According to the Companies Act, 2013 private limited company allows you to transfer shares, and public trading is not allowed in Private limited companies. A Private limited company can only have a minimum of 2 members with a maximum limit of 200 members. Private limited companies are mostly chosen by small investors, which provides balanced limited liability and flexibility. 
    • A public limited company,  according to the Companies Act, 2013, provides shares to the general public and is listed on the Indian stock exchanges. In a public limited company, the minimum shareholders should be 7 at the time of incorporation of the company. 

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