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Different Types of Companies in India

 

Starting a business is awesome, but incorporating it? That’s a milestone!

 

Incorporating your business means you’re separating its finances from your personal net worth. So, limiting the liabilities and giving you some peace of mind.

 

But first, you need to choose the right structure for your company.

 

In India, there are mainly 3 options, and each comes with its own perks and requirements.

 

  1.   Private Limited Company

 

This is the go-to choice for most new businesses. It needs at least two directors and two shareholders. If you’re planning to raise capital down the line, this structure is your best bet.

 

  1.   Limited Liability Partnership (LLP)

 

An LLP is basically a partnership with the bonus of limited liability, just like a company. If raising capital isn’t on your radar anytime soon, and you prefer fewer compliance hassles, an LLP might be the way to go.

 

  1.   One Person Company (OPC)

 

Flying solo as an entrepreneur? An OPC could be perfect for you. It’s a great option if you’re neither planning to raise capital nor working with anyone else, but still want to incorporate.

 

So, to sum it up:

 

  •       Got a co-founder and planning to raise capital? Think Private Limited Company.
  •       Got a co-founder but not raising capital? Consider an LLP.
  •       No co-founder and not raising capital? OPC could be your match.

 

Of course, there are more factors to consider, but this should point you in the right direction.

 

If you’re thinking about incorporating your business and need a hand deciding, we’re here to help! At LaunchPad, we connect you with qualified professionals who make the incorporation process smooth and give you only the right advice. Always!