Starting a business in Delhi—or anywhere in India—can seem confusing, especially when deciding from different types of business structures like a Private Limited Company, LLP, or One Person Company (OPC). This guide helps you understand the available options and choose the right one as per your needs.
Types of Company Registrations in India
Under Indian law, several forms of entities are recognized. Each has its own pros, cons, and suitability depending on the nature of the business, number of founders, and compliance requirements. Here's a brief overview:
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Private Limited Company (Pvt Ltd)
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Most popular choice for startups.
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Requires minimum 2 directors and 2 shareholders.
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Offers limited liability and easy fundraising from investors.
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Regulated by the Companies Act, 2013.
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Limited Liability Partnership (LLP)
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Combines benefits of a partnership and limited liability.
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Requires minimum 2 partners.
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Less compliance compared to a Pvt Ltd company.
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Suitable for Small and Medium businesses.
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One Person Company (OPC)
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Ideal for solo entrepreneurs.
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Requires only one director/shareholder.
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Provides limited liability protection.
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Cannot raise equity funding easily.
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Partnership Firm
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Simple to start and operate.
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Requires at least 2 partners.
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Not a separate legal entity; partners have unlimited liability.
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Suitable for small-scale, traditional businesses.
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Sole Proprietorship
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Owned and managed by a single individual.
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Easy to start, minimal compliance.
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No legal distinction between owner and business.
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Risk of unlimited liability.
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Section 8 Company
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Non-profit company for promoting charity, education, arts, etc.
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Profits must be used for the objective, not distributed.
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Requires government approval.
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Public Limited Company
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Suitable for large businesses planning to raise capital from the public.
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Requires at least 3 directors and 7 shareholders.
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Higher compliance and disclosure norms.
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US Company
How to Choose the Right Structure?
Ask yourself the following:
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Are you starting alone or with partners?
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Do you plan to raise external funding?
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What is your risk appetite and growth plan?
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How much compliance are you willing to handle?
Each structure serves a different purpose. If you are planning to scale and raise capital, a Private Limited Company is often the best choice. If you prefer low compliance and are working with a partner, go for an LLP. For solo entrepreneurs who want a corporate identity, OPC is a good start.
Conclusion
Company registration in Delhi is now a smooth, online process via the MCA (Ministry of Corporate Affairs) portal. Choosing the right type of entity is crucial and must align with your business goals, growth plans, and operational style.
Need help with registration or legal advice? Consult a professional or use an online legal platform like Setindiabiz.
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