Your structure shapes everything
The business structure you choose affects your taxes, your personal liability, your compliance burden and your ability to raise funds. Picking the right one at the start saves you from costly changes later. Here is how the main options compare.
Sole proprietorship
The simplest and cheapest to start, run by one person. There is no separation between you and the business, so your personal assets are exposed. Best for very small, low-risk operations testing the waters.
Partnership firm
Two or more people sharing a business under a partnership deed. Simple to set up, but partners typically have unlimited liability. Suitable for small businesses run by people who trust each other.
Limited Liability Partnership (LLP)
Combines partnership flexibility with limited liability and lighter compliance than a company. A strong choice for professional firms and small businesses that want protection without heavy compliance.
One Person Company (OPC) and Private Limited Company
An OPC gives a single founder limited liability with a company structure. A Private Limited Company, needing at least two people, is the go-to for startups planning to scale or raise investment, offering credibility and easy equity funding in exchange for more compliance.
Quick guide to choosing
- Scaling or raising funds → Private Limited Company
- Solo founder wanting limited liability → OPC
- Professional firm or small business wanting light compliance → LLP
- Known partners, simple setup → Partnership
- Very small, low-risk, minimal compliance → Proprietorship
How Aidwish helps
Aidwish assesses your goals, risk and growth plans, recommends the right structure, and handles the full registration and ongoing compliance — so you start on the right foundation.