Legal Guide Part 1 - Choosing the Right Business Entity in India
8 min read
- Paragraph 1 - the question: The first decision an Indian founder makes is also the most consequential: which legal entity to register. The choice cascades into tax posture (corporate surcharge vs individual slab), liability exposure (limited vs unlimited), compliance burden (₹40,000-₹1,50,000 per year for a Pvt Ltd vs ₹0 for a sole proprietorship), fundraising ability (private limited is the only form VC funds will invest in), transferability of shares, and exit route (strike-off vs dissolution vs IBC).
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