Starting up in Bopal — private limited, LLP or proprietorship?
If you plan to raise money, issue ESOPs or apply for DPIIT recognition, a private limited company is the only structure investors and the 80-IAC tax holiday accept. If it is two or three professionals sharing a practice with no outside capital, an LLP gives limited liability with lighter annual filings (Form 8 and Form 11) and no audit until turnover crosses ₹40 lakh or contribution ₹25 lakh. A proprietorship costs nothing to set up but offers no liability shield and cannot bring in a partner without a fresh structure. Bopal founders most often start as a proprietorship for the first contract and convert later — workable, but the GST number, bank account and vendor contracts all move, so it is worth deciding before the first invoice.
Pvt Ltd vs LLP vs OPC