KAR SATHI · PRACTICAL GUIDE
Choosing the right business structure is one of the first important decisions an entrepreneur has to make.
01 · FROM THE GUIDE
A Private Limited Company is a company incorporated under the Companies Act, 2013.
02 · FROM THE GUIDE
The exact documentation depends on the structure and circumstances, but founders should generally keep identification and address records ready.
03 · FROM THE GUIDE
A company has shareholders. Ownership is represented through shares.
04 · FROM THE GUIDE
This table gives a quick picture, but the practical differences matter much more when you're actually starting a business.
05 · FROM THE GUIDE
Both structures are formally registered through the corporate regulatory framework.
06 · FROM THE GUIDE
A Private Limited Company has a more formal corporate structure. It must maintain prescribed records and complete applicable ROC, accounting, statutory and tax compliances.
07 · FROM THE GUIDE
One of the most common mistakes is choosing a company simply because the word “Private Limited” sounds bigger.
08 · FROM THE GUIDE
An LLP, or Limited Liability Partnership, is a separate legal entity incorporated under the Limited Liability Partnership Act, 2008.
Check current rules and your specific facts before filing or applying.
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