₹1 Lakh Store
⌘K
GETTING STARTED
FIND — Get an Idea
VALIDATE — Hit PMF (Phase 3)
UNIT ECONOMICS — First (Phase 4)
SCALE — Build to ₹1L/mo
    • GST Registration SOP
    • Business Entity Types
    • FSSAI for F&B Brands
    • Trademark Filing Guide
    • BIS Certification Checklist
    • Terms & Policies Templates
    • Consumer Protection Act
    • Drug & Cosmetics Rules
    • MRP & Labelling Rules
AI & AUTOMATION
ANALYTICS & DATA
FINANCE
TOOLS & CALCULATORS
RESOURCES
  1. SCALE — Build to ₹1L/mo
  2. Business Entity Types

04 — Legal

Business Entity Types

Choose the right business structure. Most D2C founders should start as sole proprietors and upgrade later.
Sole ProprietorLLPPvt Ltd

₹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

Business Entity Comparison

FeatureSole ProprietorLLPPvt LtdRecommendation
Setup Cost₹0-500₹5,000-10,000₹10,000-25,000Start Sole
Setup Time1-2 days7-15 days15-30 daysStart Sole
Compliance Cost/Year₹0-2,000₹10,000-20,000₹20,000-50,000Consider at scale
LiabilityUnlimited personalLimited to contributionLimited to sharesLLP/Pvt Ltd
Tax RateSlab rates (5-30%)30%25.17% (if < ₹400Cr)Sole is cheaper early
Can Raise Funds?NoLimitedYesPvt Ltd for funding
Brand CredibilityLowMediumHighPvt Ltd best

When to Upgrade

Start Here

Now

Sole Proprietor

Best if: Revenue < ₹5L/mo

Setup: 1-2 days, ₹0

Upgrade when: Revenue hits ₹10L/mo

Then LLP

₹10L/mo

Upgrade to LLP

Why: Protect personal assets

Cost: ₹10-15K setup

Compliance: ₹10-20K/year

For Funding

₹50L+/yr

Consider Pvt Ltd

Why: Raising investment

Cost: ₹15-25K setup

Compliance: ₹30-50K/year

Business Entity — Must Complete