A plain-English comparison of the three most common structures for Indian founders — and when each makes sense.
The structure you register shapes how you raise money, what you pay in compliance, and how you are taxed. Here is how the three most common options compare for Indian founders.
Private Limited Company
The default for anyone planning to raise external funding. It supports equity, ESOPs and investor due diligence, and unlocks DPIIT recognition and 80-IAC. The trade-off is higher compliance — board meetings, audits and statutory filings.
LLP (Limited Liability Partnership)
A good fit for professional services and bootstrapped businesses that want limited liability with lighter compliance than a company. LLPs cannot issue equity shares, so they are rarely ideal if you intend to raise VC funding.
One Person Company (OPC)
A single-founder company with limited liability and a corporate identity. It suits solo founders who want a company structure now, with a path to convert to a Private Limited later as they grow or raise.
A simple way to decide
- Planning to raise VC or issue ESOPs → Private Limited
- Services firm or bootstrapped, want light compliance → LLP
- Solo founder, want a company now, may convert later → OPC
Still unsure? The right answer depends on your funding plans and sector. Talk to us and we’ll recommend the structure that fits — and handle the registration.