Compare company structures
Compare different company structures in detail, browse pros and cons of each.
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Compare company structures
Compare different company structures in detail, browse pros and cons of each.
Use our free tool to get recommendations.
Take questionnaire
Consult with us
Read & Decide
Take the quiz.
Choose the best company structure for you.
What type of company are you looking to incorporate?
A. Profit
B. Non Profit
A Non Profit is an organization that uses its surplus of the revenues to further achieve its ultimate objective, rather than distributing its income to the organization's shareholders, leaders, or members.
What are my options?
Company structures available in India
One Person Company
Ideal for large scale businesses, with high investment needs
Private Limited Company
Ideal for large scale businesses, with high investment needs
Limited Liability Partnership
Ideal for large scale businesses, with high investment needs
More options
Other Common Options in India
Partnership Firm
Ideal for individuals who have agreed to share the profits of a business
Proprietorship Firm
Ideal for small operations with a single proprietor.
Subsidiary of a company
Ideal for organisations looking to venture into new domains
Public Limited Company
Ideal for large scale businesses, with high investment needs
Cooperative
Ideal for large scale businesses, with high investment needs
Dormant Company
Ideal for large scale businesses, with high investment needs
Hindu Undivided Family ( HUF )
Ideal for large scale businesses, with high investment needs
For Non Profit Organisations
Usually used by NGOs, etc
Section 8 Company
Ideal for non profit organisations or social ventures
Trust
Ideal for non profit organisations or social ventures
Society
Ideal for non profit organisations or social ventures
For foreign companies
Subsidiary of foreign company
Ideal for foreign organisations looking to venture into India
Branch Office
Ideal for organisations looking to venture into new domains
Project Office
Ideal for foreign organisations looking to venture into India
Liason / Representative Office
Ideal for large scale businesses, with high investment needs
Common company structures
3 most popular choices
| Company Structure | Ideal for | Liability | Taxation | Capital Contribution | Share holders & directors | Foreign Direct Investment |
| One Person Company | Best suited for start-ups and SMEs, such as retail, trade, small manufacturing operations, one man operations, etc. | Liability is limited to the company. |
| No minimum limit. Maximum Rs. 50 Lakh. | Only one. No directors needed. | FDI is not allowed with OPC. |
| Private Limited Company | Best suited for start ups, large businesses, industrial establishments, etc. | Liability is limited to the company. |
| No minimum limit of paid up capital. | Minimum of 2 shareholders. Maximum of 200 shareholders. Atleast two directors needed. | Permitted |
| Limited Liability Company | Best suited for professionals like CAs, Lawyers, Associates, etc in the service sector. | An LLP is partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. Partners are not liable for mis conduct by other partners. |
| No requirement. | Minimum 2 partners, no limit on maximum. | LLPs with FDI will be allowed, through the Government approval route, in those sectors/activities where 100% FDI is allowed, through the automatic route and there are no FDI-linked performance related conditions. |
More company structures
More ways to incorporate in India
| Company Structure | Ideal for | Liability | Taxation | Capital Contribution | Share holders & directors | Foreign Direct Investment |
| Partnership Firm | Best suited for start-ups and SMEs with more than one owner. | Partners liability is unlimited. |
| No requirement. | Minimum 2 share holders, no limit on maximum. | |
| Proprietorship Firm | Best suited for start-ups and SMEs with one owner. | Proprieter's liability is unlimited. | Same rates as applicable with individuals. | No requirement. | Minimum 1 member. | Not Applicable. |
| Subsidiary of a company | Suited for businesses who want to diversify into new domains. | Liability is limited to the company. |
| No requirement. | Minimum 2 share holders, no limit on maximum. At least 2 directors needed. | Permitted |
| Public Limited Company | Suited for very large busineses. | Liability is limited to the company. |
| No requirement. | Minimum 7 share holders, no limit on maximum. At least 3 directors needed. | Permitted |
| Cooperative | Voluntary association of persons, who's motive is the welfare of the members. | Liability of members is limited to their shares in the organisation. |
| No requirement. | Minimum 10 members, no limit on maximum. | N / A |
| Dormant Company | An existing company can be filed as dormant if it's not operational. | N/A | N/A | N/A | N/A | N/A |
| Hindu Undivided Family | Best suited for a Hindu unified family. | The liability of the members are limited to their shares. However, the Karta, or the head of the family has unlimited liability. | Same as those applicable to individuals | No requirement. | Minimum 2 members, no limit on maximum. | N / A |
Non Profit structures
| Company Structure | Ideal for | Liability | Taxation | Capital Contribution | Share holders & directors | Foreign Direct Investment |
| NGO ( Section 8 ) | Best suited for professionals like CAs, Lawyers, Associates, etc in the service sector. | Liability is limited to the organisation. | If section 8 companies are covered under section 12 AA then tax is exempt otherwise tax will be applicable as Total turnover or gross reciept of PY-16-17 is upto 250 crore. @ 25% otherwise @ 30% and 4% cess | No requirement. | Minimum 2 share holders, no limit on maximum. At least 3 directors needed. | LLPs with FDI will be allowed, through the Government approval route, in those sectors/activities where 100% FDI is allowed, through the automatic route and there are no FDI-linked performance related conditions. |
| NGO ( Trust ) | Best suited for professionals like CAs, Lawyers, Associates, etc in the service sector. | Liability is limited to the company. | If section 8 companies are covered under section 12 AA then tax is exempt otherwise tax will be applicable Flat rate of 30% 4% cess | No requirement. | N/A | Permitted |
| NGO ( Society ) | Best suited for professionals like CAs, Lawyers, Associates, etc in the service sector. | Liability is limited to the company. |
| No requirement. | Minimum 2 share holders, no limit on maximum. At least 2 directors needed. | LLPs with FDI will be allowed, through the Government approval route, in those sectors/activities where 100% FDI is allowed, through the automatic route and there are no FDI-linked performance related conditions. |
Strucutures for foreign bodies
| Company Structure | Ideal for | Liability | Taxation | Capital Contribution | Share holders & directors | Foreign Direct Investment |
| Subsidiary of a foreign company | Best suited for foreign entities looking to venture into India. | Liability is limited to the company. |
| No requirement. | Minimum 2 share holders, no limit on maximum. At least 2 directors needed. | LLPs with FDI will be allowed, through the Government approval route, in those sectors/activities where 100% FDI is allowed, through the automatic route and there are no FDI-linked performance related conditions. |
| Branch Office | Best suited for professionals like CAs, Lawyers, Associates, etc in the service sector. | Liability is limited to the company. |
| No requirement. | Minimum 2 share holders, no limit on maximum. At least 2 directors needed. | LLPs with FDI will be allowed, through the Government approval route, in those sectors/activities where 100% FDI is allowed, through the automatic route and there are no FDI-linked performance related conditions. |
| Project Office | Best suited when a company needs to set up offices for a particular project only. | N/A |
| N/A | N/A | Permitted |
| Liason / Representative Office | Suitable when a company needs just a representative in India | N/A |
| N/A | N/A | Permitted |
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