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.
Your recommended structure
Compliance Requirements
Estimated Registration Cost
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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 |
| Setup cost | ₹2–4k | ₹3–6k | ₹10–15k | ₹10–14k | ₹14–20k |
| 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 free CA consultation 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
Ranges from ~₹2,000 for a proprietorship to ~₹20,000 for a Pvt Ltd (DSC, DIN, MOA/AOA stamp duty and professional charges). The MCA government fee is waived up to ₹15L authorised capital for companies.
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.
Explore related free calculators and tools built by our chartered accountants — pick one from the panel to keep going, or browse the full toolkit.
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.