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Free tool

Business Structure Finder

Answer five quick questions to see which business structure may suit you.

Free to use. No sign-up. Suggestions are informational, not legal advice.

What is a business structure?

A business structure is the legal form your business takes. In India the common options are a sole proprietorship, a partnership firm, a Limited Liability Partnership (LLP), a One Person Company (OPC) and a Private Limited Company. Organisations with a charitable purpose can form a Section 8 company.

The structure you choose affects who owns the business, whether your personal assets are exposed to business debts, whether you can bring in investors, how you are taxed and how much ongoing compliance you carry.

What to think about before you choose

  • Owners. A company or LLP can have a single owner only as an OPC. Partnerships, LLPs and Private Limited Companies need at least two people.
  • Funding. If you expect investors, a company that can issue shares is the usual route.
  • Liability. Companies and LLPs generally separate the business’s debts from your personal assets. Proprietorships and partnerships do not.
  • Compliance. Companies and LLPs have annual filings. Proprietorships and partnerships have fewer, though tax and licence requirements still apply.

Answer the questions above and the finder will suggest a starting point, the trade-offs, and other options close behind. You can also see every tool in the ZegalWorks Tools section.

Please note

The finder is a general guide. It does not consider your tax position, state, licences or existing arrangements, and it is not legal or tax advice. Confirm your choice with a professional before you register.

At a glance

Which structure suits which business

A quick view of who each structure is usually chosen by.

Private Limited Company
Co-founders and investors. Shares, limited liability, fuller compliance.
LLP
Partners who want limited liability with lighter compliance.
One Person Company
A solo founder who wants limited liability and a company identity.
Partnership Firm
Two or more people starting quickly under a partnership deed.
Sole Proprietorship
The simplest start for one person, with personal liability.
Section 8 Company
Non-profit and social purpose organisations.
FAQ

Business structure questions

Straight answers to what founders ask before they register.

A business structure is the legal form your business takes, such as a sole proprietorship, partnership firm, LLP, One Person Company or Private Limited Company. It decides who owns the business, who is liable for its debts, how it is taxed and what compliance it needs.
Startups that plan to bring in co-founders or investors usually choose a Private Limited Company, because it can issue shares. Solo founders sometimes start with a One Person Company, and self-funded teams may prefer an LLP. The best choice depends on your plans.
Both give owners limited liability. A Private Limited Company issues shares and is the usual route for investors and stock options, with more compliance. An LLP has partners instead of shareholders, lighter compliance and is not designed for venture investment.
Yes. Many businesses begin as a proprietorship and move to a company or LLP as they grow. The change involves a new registration and transferring contracts, licences and accounts, so it is worth considering your plans before you start.
Not always. A sole proprietor or a partnership can operate without registering a company, although other registrations such as GST, Udyam or a shop licence may still apply. A company, LLP or OPC must be registered.
Yes. It is free to use, needs no sign-up and runs in your browser. The suggestion is a general guide, not legal or tax advice.

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