Choosing the wrong business structure in India is one of the hardest things to undo later — it shapes your tax position, your ability to raise funding, and how much personal liability you carry. Answer a few questions below to find the structure best suited to your situation.
| Structure | Liability | Compliance | Fundraising / Approval |
|---|---|---|---|
| Private Limited Company | Limited | Moderate–high | Best suited for investors & ESOPs |
| LLP | Limited | Lower than company | Not suited for equity investors |
| One Person Company | Limited | Moderate | Must convert to raise equity |
| Partnership Firm | Unlimited | Minimal | Not suited |
| Sole Proprietorship | Unlimited | Minimal | Not suited |
| Liaison Office | Extension of parent | RBI/AD bank reporting | RBI approval required |
| Project Office | Extension of parent | RBI/AD bank reporting | Tied to contract approval |
| Branch Office | Extension of parent | RBI + ROC reporting | RBI approval, activity-restricted |
| Indian Subsidiary | Limited | Full ROC + FDI reporting | Automatic route for most sectors |
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