Business Registration

At FinSiri Global Associates

Business Registration Options in India

India offers several types of business structures to suit different goals, scales, and compliance needs. Choosing the right structure is key to building a legally sound and scalable enterprise.

1. Sole Proprietorship​

  • Best for Individuals starting small businesses with full control. – Legal identity Not separate from the owner.
  • Registration No mandatory registration, but GST, Shops and Establishment licenses may apply.
  • Taxation The profits are added to the proprietor’s personal income and taxed accordingly.

 2. Partnership Firm

  • Best for Individuals who want to jointly own and operate a business.
  • Legal identity Not distinct from partners.
  • Registration Though not compulsory under the Indian Partnership Act, 1932, it is highly recommended to ensure legal validity and enhance credibility.
  • Taxation Partnership firm is taxed separately.

3. Limited Liability Partnership (LLP)

  • Best for Professionals or businesses needing limited liability with flexibility.
  • Legal identity Separate from its partners.
  • Registration Mandatory under the LLP Act, 2008.
  • Taxation An LLP is taxed independently as a distinct legal entity.

4. Private Limited Company

  • Best for Startups and growthdriven businesses.
  • Legal identity Separate legal entity.
  • Registration Compulsory under the Companies Act, 2013.
  • Taxation Company pays corporate tax; dividends are taxed separately.

5. One Person Company (OPC)

  • Best for Single entrepreneurs wanting corporate benefits.
  • Legal identity Separate from the owner.
  • Registration Mandatory under the Companies Act, 2013.
  • Taxation Follows the same tax structure as a private limited company.

6. Public Limited Company

  • Best for Large businesses looking to raise capital from the public.
  • Legal identity Independent corporate identity.
  • Registration Mandatory under the Companies Act, 2013.
  • Taxation Corporate taxation applies.

7. Section 8 Company (NonProfit)

  • Best for Charitable, religious, or social objectives.
  • Legal identity Separate entity.
  • Registration Conducted in accordance with Section 8 of the Companies Act, 2013.
  • Taxation May qualify for tax exemptions if specific conditions are met.