Compare company structures


Compare different company structures in detail, browse pros and cons of each.
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Read & Decide

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 StructureIdeal forLiabilityTaxationCapital ContributionShare holders & directorsForeign Direct Investment
One Person CompanyBest suited for very small busineses, such as retail, trade, small manufacturing operations, one man operations, etc.Liability is limited to the company.
  • Gross Turnover in PY 16-17 <= 250 crores-25% Otherwise 30% +
  • Surcharge: If Total income > 1 crore but upto 10 crores-7% If Total income > 10 crore-12% +
  • Health and education Cess 4%(compulsory)
No minimum limit. Maximum Rs. 50 Lakh.Only one. No directors needed. FDI is not allowed with OPC.
Private Limited CompanyBest suited for start ups, large businesses, industrial establishments, etc.Liability is limited to the company.
  • Gross Turnover in PY 16-17 <= 250 crores-25% Otherwise 30% +
  • Surcharge: If Total income > 1 crore but upto 10 crores-7% If Total income > 10 crore-12% +
  • Health and education Cess 4% (compulsory)
  • Dividend distribution @ 15% (grossing up applicable) + 12% surcharge + HEC 4%(compulsory)
No minimum limit of paid up capital.Minimum of 2 shareholders. Maximum of 200 shareholders. Atleast two directors needed.Permitted
Limited Liability CompanyBest 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.
  • Flat rate - 30% +
  • Surcharge@12% of tax if Net Total Income > 1 crore + HEC- 4%(compulsory)
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 StructureIdeal forLiabilityTaxationCapital ContributionShare holders & directorsForeign Direct Investment
Partnership FirmBest suited for small businesses with more than one owner.Partners liability is unlimited.
  • Flat rate of 30% +
  • Surcharge@12% of tax if NTI > 1 Crore +
  • 4% HEC (compulsory)
  • Paid in 4 installments.
No requirement.Minimum 2 share holders, no limit on maximum.
Proprietorship FirmBest suited for small busineses with one owner.Proprieter's liability is unlimited. Same rates as applicable with individuals.No requirement.Minimum 1 member.Not Applicable.
Subsidiary of a companySuited for businesses who want to diversify into new domains.Liability is limited to the company.
  • Gross Turn over in PY 16-17 <= 250 crores- 25% Otherwise 30% +
  • Surcharge : If Total income >1 crore but upto 10 crores- 7% If Total income >10 crore- 12% +
  • Health and education Cess 4% (compulsory)
No requirement.Minimum 2 share holders, no limit on maximum. At least 2 directors needed.Permitted
Public Limited CompanySuited for very large busineses.Liability is limited to the company.
  • Gross Turnover in PY 16-17 <= 250 crores- 25% Otherwise 30% +
  • Surcharge : If Total income >1 crore but upto 10 crores- 7% If Total income >10 crore- 12% +
  • Health and education Cess 4% (compulsory)
No requirement.Minimum 7 share holders, no limit on maximum. At least 3 directors needed.Permitted
CooperativeVoluntary association of persons, who's motive is the welfare of the members.Liability of members is limited to their shares in the organisation.
  • Flat rate of 10% for income upto ₹10,000
  • ₹1,000 + 20% between ₹10,001 and ₹20,000
  • ₹3,000 + 30% over ₹20,000 + surcharge@12% of Tax if NTI > 1 Crore + 4% HEC(compulsory)
No requirement.Minimum 10 members, no limit on maximum.N / A
Dormant CompanyAn existing company can be filed as dormant if it's not operational.N/A N/AN/AN/AN/A
Hindu Undivided FamilyBest 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 individualsNo requirement.Minimum 2 members, no limit on maximum.N / A

Non Profit structures

Company StructureIdeal forLiabilityTaxationCapital ContributionShare holders & directorsForeign 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% cessNo 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% cessNo requirement.N/APermitted
NGO ( Society )Best suited for professionals like CAs, Lawyers, Associates, etc in the service sector.Liability is limited to the company.
  • Flat rate of 30%
  • Surcharge of 5%
  • 3% cess
  • Paid in 3 installments.
  • No dividend distribution tax.
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.