BUSINESS STRUCTURE SELECTION
Choosing the right business structure is the first step toward building a successful venture. It defines how your company will operate, pay taxes, and comply with legal obligations. The structure you choose — whether a sole proprietorship, partnership, limited liability partnership (LLP), private limited company, or one-person company (OPC) — impacts ownership, liability, control, and future growth potential. The right choice ensures smooth registration, legal protection, and scalability, while considering taxation, funding, and management flexibility.
Documents Required
- Identity proof of promoters/directors (PAN, Aadhaar, Passport)
- Address proof of promoters/directors (Utility bill, bank statement)
- Residential proof of office (Rent agreement, ownership documents, NOC)
- Photographs of promoters/directors
- Digital Signature Certificate (for Ltd. or Pvt. Ltd.)
- Director Identification Number (for Ltd. or Pvt. Ltd.)
- Constitution documents based on structure:
- Sole Proprietorship: GST registration, Udyam /MSME certificate
- Partnership Firm: Partnership Deed
- LLP: LLP Agreement
- Private Limited Company: Memorandum of Association (MOA) & Articles of Association (AOA)
FAQs
Sole Proprietorship, Partnership, Limited Liability Partnership (LLP), Private Limited Company, and One-Person Company (OPC).
Private Limited Companies are preferred as they allow equity funding and attract venture capital or angel investors.
Ownership, liability, taxation, funding needs, compliance requirements, scalability, and management flexibility.
Sole Proprietorships and Partnerships are simpler, with minimal compliance compared to LLPs or Private Limited Companies.
Yes, an OPC can convert into a Private Limited Company or LLP when it grows or needs additional partners/investors.
A Partnership has unlimited liability and minimal compliance, while an LLP provides limited liability, formal compliance, and protects partners’ personal assets.