Entity discussion
Ownership, activity, funding, tax, regulatory and operating requirements.
Company setup should prepare the business to operate, report and comply from day one
VPRP helps Indian promoters and overseas businesses choose an appropriate entity, complete agreed registrations and establish the accounting, tax and compliance calendar needed after incorporation.
Practice roots since 1989The LLP was formed in 2021.
18+ countriesInternational client experience.
KPMG and EY backgroundSenior practice experience.
CA, CS and LLBFinance, company law and legal training.
Registered ValuerSecurities and Financial Assets.
4.9 Google rating47 reviews as at 7 October 2026.
When this page is relevant
- An Indian promoter is forming a company for an operating business.
- An overseas group is establishing an Indian entity.
- Incorporation, registrations and post-setup finance should be coordinated.
- Management needs clear ownership for the first deadlines.
- A founder is still deciding between a company, LLP and partnership.
Five common structures
Five ways to structure a business in India
| Private company | OPC | LLP | Partnership | Proprietorship | |
|---|---|---|---|---|---|
| Owners | 2 to 200 shareholders | 1 Indian citizen | 2 or more partners | 2 to 50 partners | 1 |
| Owners' liability | Limited to unpaid share capital | Limited to unpaid share capital | Limited to the agreed contribution | Unlimited; each partner answers for all the firm's debts | Unlimited |
| Shares for investors and stock options | Yes | Only after converting to a private limited company | No | No | No |
| Statutory audit | Every year | Every year | Only when turnover exceeds Rs 40 lakh and contribution exceeds Rs 25 lakh | None; tax audit above the income-tax limits | None; tax audit above the income-tax limits |
| Tax on profit · tax year 2026–27 | 25.168% if it opts for the 22% rate | 25.168% if it opts for the 22% rate | 31.2%, or 34.944% above Rs 1 crore of income | 31.2%, or 34.944% above Rs 1 crore of income | Your own slab rates |
| Tax when profit is taken out | Dividends taxed again in shareholders' hands | Dividends taxed again in the member's hands | Partner's share not taxed again | Partner's share not taxed again | No second tax |
Running a charity or another not-for-profit purpose? A Section 8 company is the usual company form, and the Structure Assessment covers it. Tax rates change with each year's Finance Act; VPRP updates this table after every Budget.
Structure Assessment
Company, LLP or partnership: which structure fits?
Answer up to seven questions. You see a starting suggestion straight away, and the full result comes by email.
Our starting suggestion
Also worth comparing:
This is a starting point from your answers, not advice.
Groundwork
What Groundwork covers
Incorporation
Name, signatures, constitution documents and agreed filings.
Registrations
PAN, TAN, GST, profession tax, shops and establishments, Udyam, PF, ESI or IEC where applicable.
Finance setup
Software in the business's name, chart of accounts, invoices, approvals and calendar.
Compliance calendar
Ownership and dates for tax, payroll and company-law obligations.
Transition
Move a new company into Runway, an overseas group's Indian entity into the India Finance Office, or a larger business directly into Virtual CFO.
What the client receives
A scoped setup plan, document request, responsibility for agreed filings and registrations, a status view of open items, and handover into the recurring finance and compliance process.
The clock starts on incorporation
A private company has 30 days for its first board meeting and auditor, two months for share certificates, and 180 days for commencement of business. Runway takes these on with monthly books, GST, TDS and payroll.
The Groundwork brochure
Eight pages on choosing a structure and setting it up properly.
Frequently asked questions
Can you help choose the entity?
Yes. VPRP explains finance, tax, funding and compliance considerations. A lawyer joins when a legal opinion is needed. The assessment provides a starting point.
Do you set up companies outside Mumbai?
Yes. MCA incorporation is online. We handle state registrations directly in Maharashtra and Gujarat and confirm other states at the first discussion.
Company or LLP: which pays less tax?
It depends on profit extraction. The 2026–27 comparison above is a starting point; we work through the actual numbers before incorporation.
Can a non-resident own the company?
Yes, within sectoral foreign-investment rules. An LLP can receive foreign investment only in eligible automatic-route sectors.
Can VPRP continue after incorporation?
Yes. Runway covers books, tax and company law every month; an overseas group's entity usually moves to India Finance Office.
Are government fees included?
The proposal separates professional fees, government charges and third-party costs.
Plan the entity and operating process before filings begin
Share the owners, activities, expected start date and whether the business has an overseas parent.
