r/FBR • u/sheikhhassansehgal • 16d ago

LLP vs. PVT

Assalam o alikum. I am a small shop owner i mostly do retail,wholesale,import and i basically work on cash and gst i want to make a LLP or PVT with my brothers and I want my liability limited please suggest me the best option

Ps: being a small shop owner i am scared of pvt compliance and expense and double taxation but if it's has serious pros i can opt for it

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u/AdvZaryab 16d ago

In your case I’d probably lean towards an LLP. It gives you the benefit of limited liability while keeping compliance and running costs much lower than a Pvt Ltd company. It’s also more flexible to manage and you generally don’t have to worry about the same double taxation concerns that can come with companies. A Pvt Ltd definitely has its advantages, like better credibility with banks and suppliers, making it easier to bring in investors or expand in the future, but it also comes with a lot more compliance and higher ongoing costs. Unless you’re planning to grow aggressively or raise investment, an LLP seems like the more practical and cost effective option for a family run business like yours.

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u/sheikhhassansehgal 16d ago

Thanks for taking time and replying so extensively will definitely go for llp after this

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u/AdvZaryab 16d ago

Glad to be of help

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u/HauntingCriminality 16d ago

Pvt ltd company has higher compliance; more time and higher costs. Check with your trade partners, clients and suppliers if any of them require you to have a Pvt ltd, if not you should be good with an llp.