If you're thinking of starting a business, you’ll need to look at the advantages and disadvantages of each different business structure and work out which structure best suits your needs.

The five most common types of business structures in India are:

1. Private Limited Company: Private limited company is highly famous type of structure which is chosen by higher number of startups in India. A PLC is also getting certain start-up benefits in India and can fetch easy funding for the business. A minimum of 2 directors (one should be Indian Resident) can start a private limited company. For more information click here 
2. One Person Company (OPC): This is a refined form of proprietorship. A single person can control the operation of OPC. An OPC can be formed by a single person with a family nominee. Said person will be the single shareholder and director itself. For more information click here
3. Limited Liability Partnership (LLP): A LLP is also a type of partnership in which partners have a limited liability unlike a normal partnership. LLP registration is governed by the LLP Act, 2008 and to be register with Ministry of Corporate Affairs, India. For more information click here
4. Sole Proprietorship: Sole proprietorship is the structure which is owned by a only single person. Most popular type of business which is quietly unsystematic and famous among small merchants and small traders.
5. Partnership: That type of structure can be run by 2 or more persons, called partners. A normal partnership can be registered or cannot be registered. Partners will have a unlimited liability in partnership, means they are personally liable for the debts or misrepresentation in form.

Before deciding which business structure to use, it’s important you seek advice from a professional business adviser, a Chartered Accountant. You can always contact filingdigits.com for our free advisory services to choose a best suitable business structure for you.

Click here to have a look on comparison of various business structures.

Click here to choose and register a business structure.

Changing business strunture:

It is important to know that you're not sticked into one business structure for the life of your business. As your business grows and changes, you may decide to move to a different type of business structure.

• Before changing structures, you need to be aware of the differences and obligations for each.
• A business restructure may refer to reorganising your business.
• It is generally done to be more profitable, improve processes and adapt to the changing needs of the business.
• A business structure is often the first thing to change when your business grows, particularly if you start as a sole trader and then want to take on a partner or even register as a company.