Starting a business in India

Start with business structure that best suits your requirements

Setting up a business is the first step to fulfill your dream of being an entrepreneur. To make this dream a reality, you have to first establish it in eyes of law. Every business structure in India derives from different characters and is beneficial for different business activities. Therefore, the first thing you do is to plan and discuss your business requirements with our experts and end upon the suitable business structure for you. The popular business structures in India are Proprietorship firm and Partnership firm with corporate entities like Private Limited Company, OPC and Limited Liability Partnership, each serving varied needs of the businesses.

Popular Options

A Private Limited Company is a corporate structure preferred by start-ups and entrepreneurs in India. This ensures limited liability of owners and numerous options for funding.

An LLP is the hybrid structure of a Private Company and a Partnership Firm. It is best suitable for services including professional consultancy apart from small and medium scale businesses.


One Person Company is a type of Private Limited Company but with a different structure. It is a company which is owned by a single person but unlike a proprietorship firm, it is a corporate structure.

It is a partnership when two or more person come together for profit from a business. This structure is best suitable for small and medium scale businesses with an additional benefit of lower compliances.

Proprietorship firm is the most popular business structure to start a business in India, but it is an unorganized structure. Most of the entrepreneurs start their business journey with this structure.


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Special Business Entities

This structure is exclusive of foreign nationals and entities that want to step into the Indian market. Registering an Indian Subsidiary is a prime way to easily establish their business as a corporate structure.

Section 8 company is a special entity registered with a sole objective of charitable purpose. Unlike a trust, this is a corporate business structure that ensures the limited liability and a separate existence.


Producer company is the corporate entity that is engaged in an activity connected to any primary produce (in relation to farming) of its active members. It is formed at least 10 individuals

Common Questions

To register a business in India, the promoters or owners are required to finalize their business activities and capital requirements first. Based on aspects such as the association of partnership, fund requirements, types of activities, etc. the appropriate business strucutre is chosen.

Yes, registration of the business entity is a primary requirement to establish the business and get legally recognized in the eyes of law. For a proprietorship firm, registration is not mandatory but preferable owing to registration benefits and the requirement of opening a business account in banks.


To choose the right business structure, the first aspect is to decide if there is any business partner or not. Sole Proprietorship and OPC are for those who wish to be sole owners whereas other structures can be established with partners. Second thing is to decide about the capital requirement. For businesses with more capital requirement, corporate structures are beneficial. Apart from all other pre-registration aspects, one must not miss considering the post-registration aspects, tax liabilities, and compliance matters.


The amount of capital depends on the activity and its scale. It varies from small and medium-size businesses to wholesale and retail businesses. The best way to decide the appropriate amount is to first analyze the future expenses and requirements. Also, one has to fulfill the minimum requirement of capital based on the organization structure chosen.

The legal requirements do not end with registration. The businesses have to make sure that other registrations such as GST registration, shop & establishment registration or trademark registration, etc. are also obtained after the business set-up. The activity specific registrations such as Import-Export Code, FSSAI registration, etc. are also required.

Every organization structure is regulated by specific registration law. Whether it is a private company or LLP, regulatory approval is required for their registration. In addition to that, businesses such as stockbroking, banking activities, insurance agency, etc. require prior approval from the regulatory authorities such as SEBI, RBI & IRDA. These registrations must be obtained prior to business registration.