A Limited Liability Partnership (LLP) is a unique business structure in India that combines the flexibility of a partnership with the advantages of limited liability. It is registered under the Limited Liability Partnership Act, 2008 and is governed by the Ministry of Corporate Affairs (MCA). In an LLP, the partners enjoy limited liability, meaning their personal assets are protected from business debts and liabilities. Unlike a traditional partnership, where all partners have unlimited liability, in an LLP, liability is limited to the agreed contribution of each partner. An LLP must have at least two partners, and there is no upper limit on the number of partners. The main benefit of an LLP is that it provides a more flexible structure for smaller businesses and startups, offering the ability to divide profits and responsibilities among the partners as per their agreement. Moreover, an LLP is not required to hold annual general meetings, which reduces administrative costs. The partners are required to file annual returns with the Registrar of Companies (RoC) and maintain statutory records, ensuring compliance. Overall, an LLP is ideal for professionals and small businesses that require limited liability protection, flexibility in management, and a relatively simple structure for operation.

A One Person Company (OPC) is a type of business entity that allows a single individual to operate and manage the company, combining the benefits of a private limited company with the simplicity of a sole proprietorship. Registered under the Companies Act, 2013, an OPC allows a single person to own and run the business while enjoying the benefits of limited liability protection, which means the owner’s personal assets are protected from business debts and liabilities. To form an OPC, the owner must appoint a nominee, who will take over the company in case of the owner's death or incapacity. Unlike other companies, an OPC only requires one director and one shareholder, making it the perfect choice for solo entrepreneurs and professionals who want to formalize their business structure while limiting their personal risk. Despite its simplicity, an OPC must comply with statutory obligations, including filing annual returns and maintaining records as required by the Registrar of Companies (RoC). While an OPC offers the advantage of being a separate legal entity, it also comes with restrictions such as no possibility of raising funds from the public or shareholders, making it suitable for small, non-investment-driven businesses. Overall, an OPC is an ideal structure for individuals looking to start a business with limited liability while maintaining full control and ownership.

A Private Limited Company (Pvt Ltd) is a type of business entity that is privately owned and offers limited liability protection to its shareholders. It is registered under the Companies Act, 2013 and is one of the most common structures used by businesses in India. A Pvt Ltd company must have at least two directors and two shareholders, with the possibility of these being the same individuals. The liability of shareholders is limited to the unpaid amount on their shares, meaning personal assets are protected. This legal structure ensures that the company is treated as a separate entity from its directors and shareholders, offering perpetual succession, which means the company continues to exist even if its directors or shareholders change. It also provides flexibility in raising funds and is a preferred choice for investors. However, a Pvt Ltd company must comply with various regulatory requirements, such as filing annual returns, maintaining statutory records, conducting board meetings, and appointing a statutory auditor. The company must also have a registered office address and provide proof of the office space being used for business activities. Overall, setting up a Private Limited Company offers significant legal and financial benefits, making it an ideal choice for those looking to build a scalable and professionally managed business.