Start a Business

Starting a business in India takes 15 to 30 days, depending on whether you choose a private limited company, one-person company (OPC), limited liability partnership (LLP), partnership or sole proprietorship. The key factors to base your decision on are the funding support the business structure provides, start-up costs, the compliance work involved and the tax advantages offered.

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The best option for start-ups, as it is the only business structure that can raise funding from venture capitalists. An added bonus is that promising employees can also be given equity stake in a company via ESOPs.

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The LLP has the same set-up as a Partnership firm, but with many of the advantages of a Private Limited Company. It is also cheaper to start and has fewer compliances.

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An OPC, as the name indicates, has just one partner, but enjoys nearly all the advantages of a Private Limited Company (though raising funds would be tough). A major drawback, however, is that it must be convertedinto a Private or Public Limited Company in case revenues cross INR3 crore.

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All it needs is a partnership deed that does not even need to be registered. A good option for home-based businesses, particularly while starting out.

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Small businesses with little to no risk can run in the name of the owner itself. You can simply pick from one of many government registrations that apply to your business to get started.

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