The structure you pick affects your liability, your compliance workload, your ability to raise money and your credibility with customers. Here is a plain way to compare the options.
The six common structures
- Sole proprietorship: one individual, no separate legal identity, simplest to start.
- Partnership firm: two or more people under a partnership deed; partners are personally liable.
- LLP: partners with limited liability and lighter compliance than a company.
- One Person Company (OPC): a single owner with limited liability.
- Private Limited Company: the usual choice for startups and growing businesses, including those seeking investment.
- Public Limited Company: for businesses planning to raise money from the public.
How to decide
- Need to protect personal assets? Choose an LLP, OPC or company over a proprietorship or partnership.
- Planning to raise investment? A Private Limited Company is the structure investors expect.
- Want minimum paperwork? A proprietorship is the lightest; an LLP is the lightest option with limited liability.
- Running alone? An OPC gives limited liability to a single owner.
- Professional firm or family business? An LLP is often a good fit.
You can also start simple and convert later: a proprietorship can move into a Private Limited Company, a partnership into an LLP, and a private company into a public company.
Not sure which one fits?
Tell us what you are building, who is involved and whether you plan to raise money. We will recommend a structure and explain the compliance that comes with it, before any work begins.
Common questions
Can I change my structure later?
Yes. Common routes are proprietorship to Private Limited, partnership to LLP and private company to public company. Each has its own filings, so it helps to plan ahead.
This guide is general information, not professional advice. Rules, thresholds and timelines change, so we confirm the current position for your case before filing. Government fees are separate from our service charge and are quoted before work begins.