The single most expensive early mistake is picking the wrong entity. Here is the cheat-sheet we give every first-time founder.
Proprietorship
- Cost: ₹0
- Compliance: minimal
- Liability: unlimited (personal assets at risk)
- Best for: hobby projects, small local services
OPC (One Person Company)
- Cost: ~₹8,000
- Compliance: moderate — annual ROC
- Liability: limited
- Best for: solo founders who want limited liability but not partners
LLP
- Cost: ~₹8,000
- Compliance: low — Form 8 & 11 yearly
- Liability: limited
- Best for: consulting, professional-services partnerships
Private Limited
- Cost: ~₹10,000-12,000
- Compliance: high — annual ROC, board meetings, audits
- Liability: limited
- Best for: startups raising equity, ESOPs, scale
Rule of thumb
Raising VC? Pvt Ltd. Consulting solo? LLP or OPC. Hobby / side-hustle? Proprietorship, upgrade later.
Need help? Call Cred Compliances at +91 9873602607 or email document@credcompliances.com to start your filing today.