Confused which type of Company to get registered in India ?

Often people tend to do a lot of research on what to in business and how to market your brand, but do not pay serious effort on what kind of entity structure they shall chose. Each of the company types has it’s own share of benefits and drawbacks and sometimes it might cost you really hard in case you did not opt of a suitable company structure.

Company registration in India is the first and foremost step in order to give your business a legal identity. Before establishing yourself in market, you shall ask yourself below listed questions in order to select right kind of company structure be it private limited company, LLP or One Person Company. This decision is really important as it will decide your liabilities, your company compliance cost and of-course your taxes.

Below is a comprehensive comparative chart that it explains you about the benefits of each company structure.

So chose a company registration once you have analyzed your liabilities involved in your proposed business, the type of future compliances you can afford and whether you want to raise funding or want to claim benefits of start-up India scheme.

Private limited Company Registration LLP Registration OPC Registration Sole proprietorship
Easy to Raise funding, Easy to expand Good for small business Good for artisans, small-medium enterprises Good for small business
More compliances Less compliances More compliances Regular compliances
No personal Liability Limited liability Limited liability Unlimited liability
Difficult to exit Easy to dissolve Easy to dissolve Easy to dissolve
No bar on turnover No bar on turnover Mandatory conversion into private limited over turnover of 2 crores No bar on Turnover
Recognized under startup scheme Recognized under startup scheme Not Recognized under startup scheme Not Recognized under startup scheme
Foreign National can Invest Foreign National can Invest Foreign National cannot start OPC in India Foreign National cannot start proprietorship in India
Audit is mandatory Audit is mandatory only is turnover exceed 40 lakhs and capital exceed 25 lakhs Audit is mandatory Audit is not Required

Popular Posts on

design patent registration
important points during private limited company registration
stratupindia scheme registration preocess featured on YourStory, Inc42, taxguru, office-chai, caclubindia