Business Structure Advisor
Answer the questions below and watch your recommendation — Sole Proprietorship, LLP, OPC, or Pvt Ltd — update live, with full cost and compliance breakdown.
- Free — no sign-up
- Instant, on-screen results
- Built by our CA · CS team
- Rules cited on the page
Fill in the details — the answer on the right updates as you go.
Your recommended structure
Compliance Requirements
Estimated Government Registration Cost
Talk to a CA about your structure
We'll review your result and help you register the right structure from Day 1.
Disclaimer: This tool provides general guidance only. Final structure choice should be made with a qualified CA considering your specific legal, tax, and commercial requirements.
The five structures compared
Every Indian business starts with one of these five legal forms. They differ on how many people you need, whether your personal assets are protected, how much you pay in tax, and how heavy the ongoing compliance is. Here is the side-by-side.
| Sole Proprietorship | Partnership | LLP | OPC | Pvt Ltd | |
|---|---|---|---|---|---|
| Min. persons | 1 | 2 partners | 2 partners | 1 + nominee | 2 dir + 2 sh. |
| Liability | Unlimited | Unlimited | Limited | Limited | Limited |
| Govt setup cost | ₹0.5–2k | ₹1.8–4k | ₹3–8k | ₹2–4k | ₹4–8k |
| Setup time | 1–3 days | 3–7 days | 10–15 days | 10–15 days | 10–20 days |
| Tax rate | Slab | 30% flat | 30% flat | 22% | 22% / 15% |
| Audit | Turnover-based | Turnover-based | >₹40L / ₹25L cap. | Mandatory | Mandatory |
| Raise VC equity | No | No | Hard | No | Yes |
| Compliance load | Minimal | Low | Moderate | Mod-high | High |
When to pick each one
Sole Proprietorship
Best for a solo founder testing an idea or running a small, low-risk service business below the GST threshold. Cheapest and fastest to start — but your personal assets are fully exposed and you can't raise equity.
Partnership Firm
Good when 2+ people start together with mutual trust and want legal recognition at minimal cost. Still carries unlimited liability, so most partnerships upgrade to an LLP as revenue and risk grow.
LLP
The sweet spot for professional firms and small teams that want limited liability without heavy corporate governance. Lower compliance than a company, but harder to raise VC equity through.
OPC
Made for a single founder who wants a company — separate legal entity and limited liability with one owner plus a nominee. More credibility than a proprietorship, simpler than a full Pvt Ltd.
Private Limited Company
The gold standard for startups raising funding, hiring extensively, issuing ESOPs, or working with enterprise/foreign clients. Highest compliance, but essential for scale and angel/VC investment.
Still unsure?
The answers above weigh founders, funding, revenue, liability, hiring, exports and compliance together. A CA review can confirm the fit and factor in your specific tax and legal situation.
Compliance & cost reality check
Registration is a one-time cost — but ongoing compliance is what most founders underestimate. Proprietorships and partnerships only file an ITR (plus GST if registered). LLPs add two annual ROC forms. Companies (OPC and Pvt Ltd) require a mandatory statutory audit regardless of turnover, board meetings, and multiple ROC filings every year. Match the structure to the compliance you can realistically sustain — the tool weights your answer to the final question heavily for exactly this reason.
One-time registration
Government costs range from ~₹500 for a proprietorship (state Shops & Establishment fee) to ~₹8,000 for a Pvt Ltd (DSC and MOA/AOA stamp duty). The MCA incorporation fee is waived up to ₹15L authorised capital and DIN is allotted free through SPICe+. Government fees only — professional fees are not included.
Recurring compliance
Proprietorship/partnership: ITR + GST. LLP: adds Form 11 & Form 8. Company: audit + AOC-4, MGT-7, AGM/board meetings, DIR-3 KYC — budget for a CA on retainer.
Questions people ask
Short answers on Business Structure Advisor. Tap a question to open it.
01What are the main business structures available in India?
The primary business structures in India are Sole Proprietorship, Partnership Firm, Limited Liability Partnership (LLP), One Person Company (OPC), Private Limited Company, Public Limited Company, and Section 8 Company (non-profit). Each has distinct legal, tax, and compliance implications.
02What is the minimum capital required to register a Private Limited Company?
There is no minimum paid-up capital requirement for a Private Limited Company under the Companies Act, 2013. A company can be incorporated with even Re 1 as authorised capital, though Rs 1,00,000 is the common starting point for MCA fees.
03Which business structure is best for tax efficiency in India?
LLPs pay tax at a flat 30% (plus surcharge and cess) and are not subject to dividend distribution tax. Private Limited Companies pay 22% tax under the new concessional regime but dividends are taxed in shareholders' hands. The best structure depends on profit level, investment requirements, and exit plans.
04What is the difference between an LLP and a Pvt Ltd company?
An LLP has unlimited partners, no minimum capital, and lower compliance costs. A Private Limited Company can have up to 200 shareholders, is eligible for FDI under the automatic route in most sectors, and can issue ESOPs — making it the preferred structure for VC-backed startups.
05Can a sole proprietorship be converted into a Private Limited Company?
Yes. A sole proprietorship can be converted into a Private Limited Company by incorporating a new company and transferring business assets and liabilities via a slump sale or itemised transfer. The conversion does not have a direct legal mechanism under the Companies Act but is done operationally.
More Company & MCA tools
Picked from the same shelf. Every tool is free and runs in your browser.
Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.