One of the first questions we get from new founders is which entity to register. There isn't a single right answer — it depends on what you're optimizing for.
Sole Proprietorship
The simplest to set up, with minimal ongoing compliance. The trade-off is that there's no separation between you and the business — liability is personal, and it's harder to raise outside investment.
Partnership Firm / LLP
A Limited Liability Partnership gives you shared ownership with limited liability protection and comparatively lighter compliance than a company. It's a reasonable middle ground for professional services and small partnerships that don't plan to raise institutional funding.
Private Limited Company
The standard choice if you're planning to raise venture or angel funding, issue ESOPs, or bring on multiple shareholders. It comes with more compliance — statutory audit, ROC filings, board meetings — but it's the structure most investors expect.
One Person Company (OPC)
Worth considering if you're a solo founder who wants limited liability and a corporate structure without bringing in a co-founder yet. Some restrictions apply on conversion and shareholding, so it's worth checking whether it fits your longer-term plans.
Our advice
Think two to three years ahead, not just about what's easiest to register this month. Converting from one structure to another later is possible but adds cost and paperwork you can often avoid by planning ahead.
If you're about to register a new business, talk to us first — a short conversation can save a structural change down the line.