Business Registration FAQs

It depends on three things: whether you will have co-owners, whether you intend to raise outside investment, and how much liability the business carries. A single owner starting small usually begins as a proprietorship. Two or more people who want liability capped generally choose an LLP. Founders planning to raise equity or issue ESOPs need a Private Limited Company, because it is the only one of the four that can issue shares.

With complete documents, a Private Limited Company commonly takes around 7 to 12 working days and an LLP around 7 to 10. A partnership deed can be executed within a few days, with Registrar of Firms timelines varying by state. Proprietorship registrations such as Udyam are often same-day, while GST commonly takes 7 to 15 working days. These are estimates: government processing times vary.

Our professional fee is ₹9,999 for a Private Limited Company and ₹7,999 for an LLP. Government filing fees and stamp duty are payable in addition and depend on the state and the capital involved. For Partnership Firm and Proprietorship registration, the cost depends on which registrations your specific activity needs, so we quote after understanding the business.

No. Company and LLP incorporation is filed online with the Registrar of Companies, and digital signatures are issued through video and Aadhaar-based verification, so the process can be completed remotely from anywhere in Gujarat. Documents are exchanged digitally. You are welcome to visit us in Vadodara if you prefer to discuss things in person.

Yes. A proprietorship can be moved into a partnership, LLP or company, a partnership firm can convert to an LLP or a company, and an LLP can convert to a company, each subject to conditions in the relevant law. Conversion is not free: it means new registrations, new bank accounts and updating vendor and customer records, so it is worth getting the choice roughly right at the start.

No. Raulji Group is a private business-services firm. We are not a government department and are not affiliated with the Ministry of Corporate Affairs, the GST department or any other authority. We prepare and file applications on your behalf, and approval always rests with the relevant authority.

A Limited Liability Partnership is a body corporate registered under the LLP Act, 2008. It has a legal identity separate from its partners, so it can own property and contract in its own name, while partners are liable only to the extent of the contribution they have agreed to bring in.

An LLP suits a business run by the people who own it, where profit sharing is negotiated between partners and there is no plan to raise equity investment. Professional practices, consultancies and partner-operated service firms are common examples. If you expect to take on investors, a Private Limited Company is the more workable structure.

At least two partners, with no upper limit. At least two of them must be designated partners, who must be individuals and carry the responsibility for statutory compliance, and at least one designated partner must be a resident of India.

Designated partners are the partners specifically responsible for the LLP's compliance obligations, including its ROC filings. They must hold a DPIN and a digital signature. Every LLP needs at least two, and at least one must be resident in India. Ordinary partners share in profits and management without carrying that statutory responsibility.

PAN, Aadhaar, identity proof, recent address proof in the partner's own name and a photograph for each partner, along with proof of the registered office address, a rent agreement if the premises are rented and a no-objection certificate from the owner.

Digital signatures are obtained for the designated partners, the name is reserved through RUN-LLP, the FiLLiP incorporation form is filed with the Registrar, the Certificate of Incorporation is issued with an LLPIN, and the LLP Agreement is executed on stamp paper and filed in Form 3 within 30 days of incorporation.

Yes. The LLP Agreement must be filed in Form 3 within 30 days of incorporation. If no agreement is filed, the default provisions in the First Schedule to the LLP Act apply, which divide profits and management rights equally regardless of what the partners actually intended.

An LLP cannot issue equity shares or create an ESOP pool, which rules it out for venture funding. In exchange it carries lighter compliance: no board or general meetings, and audit only once turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh. A Private Limited Company requires a statutory audit from its first year regardless of turnover.

A partnership firm under the Indian Partnership Act, 1932, is not a separate legal entity and its partners carry unlimited personal liability, including for each other's acts. An LLP is a body corporate with limited liability, and a partner is not personally liable for another partner's wrongful acts. An LLP must file annually with the Registrar of Companies, which a partnership firm does not.

Form 11, the annual return, is due by 30 May each year, and Form 8, the statement of account and solvency, by 30 October. Both are due even in a year with no business activity. Accounts must be audited if turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh. Late filing attracts a per-day penalty that keeps accruing until the filing is made.

A proprietorship is a business owned by one individual. It is not incorporated and has no legal identity separate from its owner, so the proprietor personally owns the assets, owes the debts and is assessed to tax on the income.

No. This is the most important thing to understand about the structure. Unlike a Private Limited Company or an LLP, a proprietorship is legally the same person as its owner. The business cannot contract in its own name, cannot hold property in its own name, and does not receive its own PAN. There is also no limit on the proprietor's liability for business debts.

No. There is no single registration or certificate that establishes a proprietorship, because it is not incorporated. A proprietorship is evidenced by the registrations it actually holds, most commonly Udyam registration, GST registration where applicable, and a shop and establishment registration. Be cautious of any provider that claims to issue a government proprietorship certificate.

It suits a single owner starting small, where the business is not carrying significant liability risk and there is no plan to bring in partners or investors. Freelancers, consultants, local retailers and small service businesses commonly start this way. If you need limited liability or intend to raise funding, look at an LLP or a Private Limited Company instead.

Udyam (MSME) registration, which is free and widely accepted as proof of the business. GST registration where turnover crosses the threshold or where the nature of supply makes it compulsory. Shop and establishment registration under state law for commercial premises. Beyond those, activity-specific licences such as FSSAI for food businesses, Import Export Code for import or export, and professional tax where the state levies it.

Not always. It becomes compulsory once turnover crosses the applicable threshold, and irrespective of turnover in certain cases including inter-state supply of goods and supply through an e-commerce operator. Thresholds differ for goods and services and by state category. Some proprietors register voluntarily because business customers require a GST invoice to claim input credit. We assess which applies to your specific activity before filing.

The proprietor's PAN and Aadhaar, a photograph, proof of the place of business, a rent agreement if the premises are rented, a no-objection certificate from the owner, and bank details for Udyam registration.

Banks open a current account in the business name against the proprietor's PAN and Aadhaar together with proof that the business exists. Under RBI KYC norms most banks ask for two such proofs, which in practice means a combination such as Udyam registration plus a GST certificate or shop and establishment registration.

Business income is included in the proprietor's own income tax return and taxed at the individual slab rates applicable to them, rather than at a separate rate for the business. There is no separate return for the business. A tax audit becomes applicable once turnover crosses the threshold under section 44AB, and presumptive taxation under sections 44AD or 44ADA may be available depending on the nature and scale of the activity.

Yes. A proprietor can incorporate a Private Limited Company or an LLP and transfer the business to it, or form a partnership by bringing in a partner. This is a common path once the business grows, takes on more risk, or needs to look incorporated to its customers and lenders.