Business Structure Playbook for Indian Residents

Business Structure Playbook for Indian Residents

Discover the best alternatives to LLC for Indian residents—Pvt Ltd, LLP, OPC, US C-Corp, UK Ltd, Singapore company. Simple guide for global expansion.

By Our Foreign Law Correspondent

New Delhi: November 13, 2025:

The rise of US LLC formations by Indian entrepreneurs reflects India’s growing integration into the global economy. By offering credibility, smoother payments, and access to international platforms, US LLCs are becoming a preferred choice for startups and freelancers. However, there are several other alternatives like Indian Private Limited Companies, LLPs (Limited Liability Partnerships), Sole Proprietorships, Partnerships, One Person Companies (OPCs), and overseas structures like US C-Corps or UK Ltd companies

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The safest path: start simple (LLP/OPC), then upgrade to Pvt Ltd or overseas entity when scaling globally.

1. Private Limited Company (India)

Best for: Startups, tech firms, businesses seeking investors.

Checklist:

• Choose a unique company name and check availability on MCA portal.
• Obtain Digital Signature Certificates (DSC) for directors.
• Apply for Director Identification Number (DIN).
• Draft Memorandum of Association (MoA) and Articles of Association (AoA).
• File incorporation forms (SPICe+ form) with MCA.
• Obtain PAN & TAN for the company.
• Open a corporate bank account.
• Register for GST if turnover exceeds threshold.
• Maintain statutory registers and file annual returns.

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2. Limited Liability Partnership (LLP)

Best for: Professional services, small firms, consultants.

Checklist:

• Reserve LLP name via MCA portal.
• Obtain DSCs for designated partners.
• Apply for DIN for partners.
• File incorporation form (FiLLiP) with MCA.
• Draft and file LLP Agreement within 30 days of incorporation.
• Obtain PAN for LLP.
• Open LLP bank account.
• File annual returns (Form 11) and Statement of Accounts (Form 8).

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3. Sole Proprietorship

Best for: Freelancers, small traders, individual consultants.

Checklist:

• Choose a business name.
• Open a bank account in the business name.
• Register under GST if turnover exceeds threshold.
• Obtain Shop & Establishment license (if required by state).
• File income tax returns under individual PAN.
• Maintain basic books of accounts.

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4. Partnership Firm

Best for: Small businesses with 2+ owners.

Checklist:

• Draft a Partnership Deed defining roles, capital, and profit-sharing.
• Register the firm with Registrar of Firms (optional but recommended).
• Obtain PAN for the firm.
• Open partnership bank account.
• Register under GST if turnover exceeds threshold.
• File partnership tax returns annually.

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5. One Person Company (OPC)

Best for: Solo entrepreneurs wanting corporate status.

Checklist:

• Choose a company name and reserve it via MCA portal.
• Obtain DSC and DIN for the sole director.
• Draft MoA and AoA.
• File incorporation forms with MCA.
• Obtain PAN & TAN.
• Open corporate bank account.
• File annual returns and maintain compliance like Pvt Ltd.

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6. US C-Corporation (Overseas Alternative)

Best for: Indian startups targeting US investors.

Checklist:

• Choose a state (Delaware is most popular).
• File Certificate of Incorporation.
• Appoint registered agent.
• Apply for EIN from IRS.
• Open US corporate bank account.
• File annual franchise tax and reports.
• Maintain dual compliance (US + India tax filings).

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7. UK Limited Company (Overseas Alternative)

Best for: Entrepreneurs targeting Europe.

Checklist:

• Register company with Companies House.
• Appoint director and shareholder.
• Obtain UK business bank account.
• Register for Corporation Tax.
• File annual accounts and confirmation statements.
• Report ownership in Indian tax filings.

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8. Singapore Private Limited Company

Best for: Asia-Pacific expansion.

Checklist:

• Reserve company name with ACRA.
• Appoint at least one local director (can use nominee services).
• File incorporation documents with ACRA.
• Obtain Corporate Bank Account.
• Register for GST if turnover exceeds threshold.
• File annual returns and maintain compliance.
• Report ownership in Indian tax filings.

🧭 Choosing the Right Option

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• Freelancer billing foreign clients: Sole Proprietorship or US LLC.
• Small partnership business: LLP.
• Solo entrepreneur scaling: OPC.
• Startup raising VC in India: Pvt Ltd.
• Startup raising VC in US: US C-Corp.
• Targeting Europe: UK Ltd.
• Targeting Asia-Pacific: Singapore Pvt Ltd.

✨ Final Guidance

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For Indian residents, the choice of business structure depends on:

• Scale of operations (small vs global).
• Funding needs (bootstrapped vs venture capital).
• Target market (domestic vs international).
• Compliance comfort (low vs high).

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