Meet Rohan – A First–Time Entrepreneur

Rohan, a 28–year–old software engineer from Pune, had an idea for a SaaS product. Like many budding entrepreneurs, he was full of energy and ready to start his business. But when it came time to register his company, he hit a roadblock:

“Should I register as a sole proprietor? Or maybe a private limited company? What’s the right structure for me?“

If you’ve found yourself in Rohan’s shoes, you’re not alone. Choosing the right business structure in India is one of the most important—and often most confusing—decisions a new entrepreneur makes.

Let’s walk through Rohan’s journey, and along the way, we’ll break down the options you have and what might be best for you.

1. Sole Proprietorship – Rohan’s First Thought

It sounded simple: no partners, no heavy documentation, and full control. Sole proprietorships are easy to set up and perfect for small, low–risk businesses like freelancers, consultants, or local shops. But Rohan soon realized:

• He would be personally liable for any business debts.
• Raising investment or applying for business loans could be difficult.

Best for: Freelancers, small traders, early–stage solo ventures.

2. Partnership – When His Friend Wanted In

Rohan’s friend Amit offered to join as a co–founder. They considered a traditional Partnership Firm.
It‘s easy to form with a Partnership Deed, but it comes with shared liability.

“If Amit made a financial error, I’d still be responsible,” Rohan thought.

Best for: Small, low–investment businesses run by two or more people who trust each other well.

3. Limited Liability Partnership (LLP) – A Safer Middle Ground

Rohan’s CA explained the concept of an LLP, where both partners would have limited liability. It
offers legal protection and is registered with the Ministry of Corporate Affairs (MCA). However, it
requires annual filings and a bit more structure.

“More paperwork, but more protection too. That sounds fair,” Rohan thought.

Best for: Service businesses, consultants, agencies with two or more partners.

4. Private Limited Company – The Growth Path

Rohan finally considered a Private Limited Company, which allows:

• Separate legal identity
• Limited liability
• Credibility with investors and clients
• Structured compliance and better funding opportunities

Though it requires regular ROC filings and tax returns, it’s the preferred option for startups looking to
scale.

“If I want to build a brand and seek investors someday, this is the right fit.”

Best for: Startups, growth–focused ventures, tech companies, and businesses planning to raise
funding.

How Rohan Made His Decision (With a Little Help)

Rohan didn’t choose blindly. He reached out to a Chartered Accountant to understand:

• Legal and tax implications
• Compliance requirements
• Cost of formation and maintenance
• Future business goals

This helped him register a Private Limited Company—the structure aligned with his vision and
protected his interests.

Where MY CA India Comes In

At MY CA India, we support aspiring entrepreneurs like Rohan every day. Our services include:

• Business structure consultation (Sole Proprietorship, Partnership, LLP, Pvt Ltd, etc.)
• Legal registration with MCA, PAN, GST, and bank account setup
• Guidance on compliance, taxation, and accounting setup from day one

Our goal is to help you start smart and stay compliant, so you can focus on building your dream
business.