04 — Legal
₹0-500
Sole Proprietor
Cheapest, fastest
₹5-10K
LLP
Better liability protection
₹10-25K
Pvt Ltd
Best for raising funds
₹10L/mo
Upgrade Threshold
Consider LLP/Pvt Ltd then
| Feature | Sole Proprietor | LLP | Pvt Ltd | Recommendation |
|---|---|---|---|---|
| Setup Cost | ₹0-500 | ₹5,000-10,000 | ₹10,000-25,000 | Start Sole |
| Setup Time | 1-2 days | 7-15 days | 15-30 days | Start Sole |
| Compliance Cost/Year | ₹0-2,000 | ₹10,000-20,000 | ₹20,000-50,000 | Consider at scale |
| Liability | Unlimited personal | Limited to contribution | Limited to shares | LLP/Pvt Ltd |
| Tax Rate | Slab rates (5-30%) | 30% | 25.17% (if < ₹400Cr) | Sole is cheaper early |
| Can Raise Funds? | No | Limited | Yes | Pvt Ltd for funding |
| Brand Credibility | Low | Medium | High | Pvt Ltd best |
Now
Sole Proprietor
Best if: Revenue < ₹5L/mo
Setup: 1-2 days, ₹0
Upgrade when: Revenue hits ₹10L/mo
₹10L/mo
Upgrade to LLP
Why: Protect personal assets
Cost: ₹10-15K setup
Compliance: ₹10-20K/year
₹50L+/yr
Consider Pvt Ltd
Why: Raising investment
Cost: ₹15-25K setup
Compliance: ₹30-50K/year