Ask an Expert
Ask an Expert
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
|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|