Online Private Limited
Company Registration in India

Private Limited Company vs LLP vs Sole Proprietorship

Before you register your business, it’s crucial to understand how India’s three most popular structures compare. A Private Limited Company (Companies Act 2013), a Limited Liability Partnership (LLP Act 2008), and a Sole Proprietorship (no dedicated statute; registered through tax and local licenses) each cater to different needs for growth, funding, and compliance. Below, we’ve compiled a simple comparison of Private Limited Company vs LLP vs Sole Proprietorship to help you understand each option.

Quick Takeaway: For investor confidence, ESOPs, and scalable governance, 👍choose a Private Limited Company. An LLP is suitable for limited liability with lighter compliance and active partner management. A Sole Proprietorship is best for low-risk, small-scale ventures prioritising simplicity and minimal cost, with the option to upgrade as the business grows. Call us to discuss which form of business is right for your business; we will help!

Documents for Company Registration

Proper documentation is crucial for smooth and successful private limited company registration. Our expert team at Setindiabiz has prepared this comprehensive checklist to help you gather all the necessary documents before starting the incorporation process. The list of documents below is for the Company Incorporation by all Resident Indians. If any of the shareholders or directors is a foreign national or NRI/PIO, please refer to the Incorporation of Company With FDI.

For Directors & Shareholders or Registered Office

• 1
  Passport-sized photograph
• 2
  PAN card copy
• 3
  Aadhar card copy
• 4
  Address proof (Utility bill, or bank statement)
• 5
  Digital Signature Certificate (DSC)
• 6
  Proof of registered office address (e.g., utility bill, lease agreement)
• 7
  No Objection Certificate (NOC) from the property owner (if applicable)

Company Incorporation on a Communication Address

In India, entrepreneurs can begin company registration using a “communication address” as a temporary mailing address. This flexible option lets you start your business quickly without an immediate physical office. However, within 30 days of company incorporation, you must establish a permanent registered office in the same state and update your details with the Registrar of Companies (ROC) by filing Form INC-22.

Post-Company Incorporation Support

Once your company is incorporated, you must understand the post-incorporation compliances and other necessary activities that must be completed within the next few weeks. From early-stage compliance tasks to ongoing regulatory filings, our dedicated team ensures you never miss compliance, allowing startups to focus on building and scaling their dream business.

Dedicated Post-Incorporation Assistance

Our relationship with you doesn't end at incorporation. With Setindiabiz, you receive constant support through timely reminders, expert guidance, and ongoing consultancy. When you partner with us, you can trust that your post-incorporation needs are handled professionally—freeing you to focus on growing your business and exploring new ventures.

Tax Benefits of a Private Limited Company

Incorporating your business as a Private Limited Company can unlock a range of tax benefits that other structures, like LLPs, may not offer. With opportunities to secure lower tax rates under targeted schemes and the strategic use of the Minimum Alternate Tax (MAT) regime—which ensures you pay a minimum level of tax—this structure is designed to help you manage your tax liabilities more efficiently. To give you a clear picture, we've created a simple comparison table highlighting the key tax parameters for Domestic Companies versus LLPs for AY 2025‑26.

Tax Comparison for AY 2025‑26

Setindiabiz As Your Tax Compliance Partner

As seen above, private companies can avail of special low tax rates (15% or 22% under certain schemes), which LLPs cannot, making the Pvt Ltd structure potentially more tax-efficient for qualifying businesses. Our team of qualified professionals—whether in-house or from our expert panel—ensures all your regulatory and tax compliance filings are handled with precision. Every client receives a dedicated relationship manager as a single point of contact, minimising delays and boosting efficiency. Choose Setindiabiz to incorporate your company, manage your accounting and tax filings, and deliver comprehensive IPR services so you can focus on growing your business.