Which Business Structure Is Right for You? Sole Prop, LLP, or Pvt Ltd?
Answer 7 questions about your business to find out whether Sole Proprietorship, OPC, LLP, or Private Limited Company is the right structure for you.
Answer 7 questions about your business goals, team, and plans. We'll recommend the right legal structure.
Spotlight
Business Structures in India — Quick Comparison
| Founders | Liability | Min Capital | Compliance | Best For | |
|---|---|---|---|---|---|
| Sole Proprietorship | 1 | Unlimited | None | Very low | Freelancers, small traders |
| OPC | 1 | Limited | None | Low-Medium | Solo founders wanting liability protection |
| Partnership | 2+ | Unlimited | None | Low | Small family businesses |
| LLP | 2+ | Limited | None | Medium | Professional services, small firms |
| Private Ltd | 2+ | Limited | None | High | Startups, fundraising, scalable businesses |
Business Structures in India — Quick Comparison
See the comparison above for how the five common structures stack up on liability, capital, and compliance.
Key Facts
Sole Proprietorship: Easiest to set up (just Udyam + GST + bank account). No separation between you and the business legally — creditors can claim personal assets.
OPC (One Person Company): Introduced by Companies Act 2013 specifically for solo entrepreneurs. Limited liability + corporate status. Cannot issue shares to investors. Must convert to Pvt Ltd if turnover crosses ₹2 crore.
LLP: Ideal for 2 professional partners. Partners have limited liability. Profit sharing is flexible. Cannot raise equity funding. Annual filing with MCA required.
Private Limited Company: Most credible structure for B2B clients and investors. Can issue equity shares to raise funding. Directors are employees — can draw salary. Mandatory audit above ₹40L turnover. Higher compliance cost but unlocks the most options.