Which business structure should you choose?
Choosing between a Private Limited, LLP, OPC, or Proprietorship depends on your long-term goals. Are you planning to raise VC funding? How many founders are involved? Do you need limited liability? Answer 3 quick questions to see our expert recommendation for your startup.
How many founders/owners?
The number of partners affects which legal structures are available.
Choosing the right foundation
The legal structure you choose today impacts your taxes, compliance workload, and ability to raise capital tomorrow. While it is possible to convert one structure to another later (e.g., Proprietorship to Pvt Ltd), it is often expensive and involves fresh registrations for GST and other licenses. Starting with the right structure saves time and administrative headaches.
Key structures at a glance
Private Limited
Best for high-growth startups targeting VC/Angel funding. High credibility, formal compliance.
LLP
Best for professional services or family businesses. Limited liability with lower compliance costs.
Proprietorship
Best for solo founders testing an idea. Lowest cost, but no liability protection.
Frequently asked questions
Can I start as a Proprietorship and convert to a Company later?
Yes, but it's not a direct "upgrade." You effectively register a new Company and transfer the assets/liabilities of the Proprietorship to it. You will need a new PAN, new GSTIN, and new bank accounts.
What is the cheapest company to maintain in India?
A Sole Proprietorship has the lowest maintenance cost as there are no annual MCA filings. Among corporate structures, an LLP is generally cheaper to maintain than a Private Limited Company.
Which structure offers the best tax benefits?
It depends on your turnover. Proprietorships are taxed at slab rates, while Companies and LLPs have a flat tax rate. Companies may also benefit from lower tax rates for new manufacturing units.
Related: Compliance requirements checker · Company registration cost calculator · Pricing & plans