Register your company in India quickly and easily with Ebizfiling – starting at just at ₹7,399/-
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When starting a business in India, selecting the right structure is one of the most crucial decisions an entrepreneur makes. Your company’s registration process, tax implications, funding possibilities, and annual compliance all depend on the business form you choose. EbizFiling helps you understand the three most popular types — Private Limited Company, One Person Company (OPC), and Limited Liability Partnership (LLP) — and choose the right fit.
Here are the most common structures available for company registration in India:
Minimum 2 shareholders and 2 directors required
Separate legal identity; limited liability
Best suited for startups aiming for funding
Mandatory annual ROC filing, ITR, and audit
Ideal for solo founders
Limited liability; separate legal entity
Conversion to Pvt Ltd required upon crossing threshold limits
Lesser compliance than Pvt Ltd but more than LLP
At least 2 designated partners are needed
Combines flexibility of partnership with limited liability
Suitable for consulting, services, or small-scale firms
Lower compliance than companies; no mandatory audit if turnover < ₹40 lakhs
Choosing the appropriate structure depends on these key factors:
Pvt Ltd and OPC offer full limited liability protection. LLP also offers limited liability, but internal structure resembles a partnership.
Pvt Ltd & OPC are taxed at 22% (if certain conditions met)
LLPs are taxed at 30%, but dividend distribution tax doesn’t apply
Read more: [Which is better: Pvt Ltd vs LLP vs OPC for Tax Savings?]
Pvt Ltd: High compliance (ROC filings, board meetings, audit)
OPC: Moderate compliance
LLP: Low compliance
OPC has conversion limits if turnover > ₹2 Cr or capital > ₹50 lakh
LLP and Pvt Ltd offer easier expansion, foreign investment, and credibility
|
Point of difference |
Private Limited Company |
One Person Company |
Limited Liability Partnership |
|
Minimum Members |
2 partners |
1 partner |
2 partners |
|
Ideal For |
Startups, Funding Seekers |
Solo Founders |
Professionals, SMEs |
|
Tax Rate |
22% |
22% |
30% |
|
Annual Compliance |
High |
Medium |
Low |
|
Audit Requirement |
Mandatory |
Mandatory |
Only if turnover > ₹40L |
|
Investment Friendly |
Yes |
No |
Moderate |
Why Register a Company in India?
Government Push: Make-in-India, Startup India, and PLI schemes boost manufacturing and innovation.
Ease of Entry: 100% FDI allowed in many sectors; simple incorporation via MCA portal.
Legal Identity: Separates personal assets from business liabilities.
Brand Credibility: Recognized legal entity adds to trust for clients, banks, and investors.
Funding Access: Essential if you wish to raise VC or bank funds.
Need Help Choosing the Right Entity?
EbizFiling helps Indian entrepreneurs and foreign investors make the right decision. Get a free consultation with our experts to determine what structure suits your business best.
📞 Call: +91 9643203209
✉️ Email: info@ebizfiling.com
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A Private Limited Company in the eyes of the law is regarded as a separate legal entity from its founders. It has shareholders (stakeholders) and directors. Each individual is regarded as an employee of the company.
LLP Registration, a prime reason why it has evolved is that of its simplicity in a formation and easy maintenance. It helps owners also to limit their liabilities. This is the biggest advantage of an LLP over a traditional partnership firm.
A Sole proprietorship is a form of business entity where a single individual handles the entire business organization. He is the sole recipient of all profits and bearer of all loses. There is no separate law that governs sole proprietorship.
OPC or One person company is one of the easiest forms of corporate entities to manage. OPC is a hybrid of Sole-Proprietorship and Corporate form of business. It has been provided with concessions in compliance requirements under the Companies Act.
Partnership registration is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in the Partnership Deed. It is owned, managed and controlled by an Association of People for profit.
The term HUF stands for ‘Hindu Undivided Family’ and comprises of all descendants of a common male ancestor and includes their wives and unmarried daughters. The term of HUF is not defined in income tax law; it is defined under the Hindu Law as a family.
5 Easy Steps
Complete a Checklist
Submit Documents
Verification of Documents
Obtain Registration Certificate
Obtain PAN And TAN
A compliance manager will get in touch with you to collect your documents along with a simple checklist. You need to fill up that checklist and submit along with your documents for verification. Our team of experts will verify the documents provided by you and take the procedure further. The compliance manager dedicated to you will keep you updated on the progress of Company Registration throughout the process.
Once your documents along with Checklist are submitted, we shall proceed with the application of your Digital Signature and subsequently the approval of name for your Private Limited Company. You may suggest up to three names of your choice. Names should be unique and suggestive of the Company’s business. We will proceed with application for name for your Private Limited Company in Part A of SPICe Plus form.
We will draft the MOA (Memorandum of association) and AOA (Articles of association). We will file the incorporation documents with MCA through in part B of a form called “SPICe Plus (SPICe +)” along with the subscription statement. Usually, MCA approves the forms within 4-5 days once filed and issues Incorporation Certificate with CIN. PAN & TAN are allotted alongside. You may then proceed to open your Company Bank Account.
1 : Sole Proprietorship.
2 : Limited Liability Partnership(LLP)
3 : One Person Company(OPC)
4 : Private LTD Company
5 : Public LTD Company
6 : Partnership
Step 1: Procure Digital Signature Certificate: The first and foremost step is to procure the DSCs of the Personnel involved in Private Company Incorporation in India.
Step 2: Obtain Director Identification Number.
Step 3: Reservation of Name.
Step 4: Certificate of Incorporation.
Steps and Business days required for company registration (Approx) :-
Getting Digital Signature Certificate. -> 2 days
Getting Director Identification Number Of DIN -> 1 day
Name Approval -> 3 days
Company registration -> 5 days
The answer is no! Registering a company is not the only way to start a business in India. The simplest way to start your own business is to acquire any tax license, like service tax registration.
For Sole proprietors there is no formal registration, but they can get it registered through SSI/MSME Registration or GST Registration. However, if you’re starting a One Person Company, Private Limited Company or Limited liability partnership (LLP), you are legally required to register with Registrar of Companies.
Don’t worry!! Our expert will help you to choose a best suitable plan for you. Get in touch with our team to get all your queries resolved. Write to us at info@ebizfiling.com or call us @+91 9643 203 209.
Register your company in India quickly and easily with Ebizfiling – starting at just at ₹7,399/-
Proven partner for 5000+ startups and companies in India for Company Registration
