Category
Start a Business
Choosing a structure is the first and most consequential decision a founder makes. It fixes your liability, your tax rate, how much compliance you carry every year, and whether an investor can put money in without restructuring. Compare the options below, then register with a qualified professional handling the filing end to end.
Which structure is right for you?
It depends on liability, funding and annual compliance.
| Private Limited | LLP | OPC | Partnership | Proprietorship | |
|---|---|---|---|---|---|
| Minimum members | 2 shareholders | 2 partners | 1 member + nominee | 2 partners | 1 owner |
| Minimum directors | 2 directors | 2 designated partners | 1 director | Not applicable | Not applicable |
| Separate legal entity | Yes | Yes | Yes | No | No |
| Liability | Limited to shares | Limited to contribution | Limited to shares | Unlimited | Unlimited |
| Annual compliance | High | Moderate | High | Low | Very low |
| Statutory audit | Always | Above turnover / contribution limits | Always | Only under tax audit | Only under tax audit |
| Taxation | Corporate rate | Firm rate | Corporate rate | Firm rate | Individual slab |
| Can raise equity | Yes — the standard choice | No | Restricted | No | No |
| Transfer of ownership | Easy, by share transfer | By agreement | Restricted | By agreement | Not transferable |
| Typical setup cost | Higher | Moderate | Moderate | Low | Lowest |
| Best suited to | Startups seeking investment | Professional and services firms | A single founder wanting limited liability | Small family businesses | Testing an idea, smallest traders |