Startups have several options for legal structures when registering their businesses, each offering distinct benefits in terms of ownership, liability and legal obligations. The major types of business structures and their benefits are described down below.

Type Governing Act Features Registration Documents required
Limited Liability Partnership (LLP) Limited Liability Partnership Act, 2008 1. No capital required during registration.
  1. Lower registration fee compared to a Private Limited Company.
  2. Fewer annual compliances to meet.
  3. Liability limited to the investment made while setting up. | Registration required with the Registrar of Companies. | 1. Digital Signature Certificate
  4. PAN
  5. Residence Proof
  6. Photograph
  7. Registered office address proof | | Private Limited Company (Pvt Ltd) | Companies Act, 2013 | 1. Easy to raise money from Venture Capital or Private Equity.
  8. No personal liability involved.
  9. No paid-up capital required for registration.
  10. It can be listed on the stock exchange.
  11. Comparatively more documentation and compliances required. | Registration with the Registrar of Companies.

Certification of Incorporation required. | 1. Digital Signature Certificate 2. PAN 3. Director Identification Number 4. Memorandum of Association (MoA) 5. Articles of Association (AoA) | | One Person Company | Companies Act, 2013 | 1. Greater control and flexibility for the founder. 2. Fewer compliances than a private limited company. 3. Suitable for a small-scale business. 4. Nominee appointment required while setting up. | Registration with the Registrar of Companies.

Certification of Incorporation required. | 1. Digital Signature Certificate 2. Director Identification Number 3. PAN 4. Address Proof 5. MoA 6. AoA |

Note: Please be aware that the information provided reflects the latest available version as of April 15th, 2025. It is crucial to continuously monitor for any subsequent amendments or updates to ensure ongoing compliance.