LLP or Private Limited — which is better for a startup?
If you intend to raise money from investors, Private Limited — only a company can issue
shares. If you are funding it yourselves, an LLP gives similar protection for your personal
assets with noticeably less annual compliance. The real question is not which is better, it is
whether outside investment is part of your plan.
Can I convert later if I choose wrong?
A registered partnership firm genuinely converts — to an LLP under the LLP Act, or to a
company under Section 366 of the Companies Act — with the firm’s assets and liabilities
vesting in the new entity. A proprietorship cannot, because it has no separate legal identity
to convert: you incorporate the LLP or the company fresh, move the business across, and the
proprietorship stops. Either route has its own cost and timeline, which is why ten minutes
now is cheaper than sorting it out in two years.
How long does registration take?
It depends on the structure and on how quickly documents and digital signatures come
together. Name approval is usually the step that decides the timeline. We give you a realistic
date once we have seen your documents, rather than a number that sounds good.
Do I need GST registration straight away?
Not always. It depends on your turnover, whether you sell across state lines, and what you
sell. Some businesses must register from day one; others are better waiting. We check this as
part of setting you up.
Can a single person start a company?
Yes — a One Person Company gives you a company structure on your own, and a
proprietorship is the simpler route with no separation between you and the business. Which
suits you depends on your risk and your plans, so ask us.