Most common business entity in India
The Private Limited Company is the standard choice for most small- to mid-size businesses in India. Like a US LLC, it provides limited liability protection separated from the owners' personal assets. SPICe+ form is the integrated incorporation route.
The full menu of India business structures
| Structure | Liability | Tax | Best for |
|---|---|---|---|
| Private Limited Company | Limited | 25.17% corporate | Most operating businesses |
| Sole proprietor / self-employed | Unlimited personal | Personal income tax rates | Freelancers, one-person services |
| Partnership | Joint and several | Pass-through to partners | Professional services (law, accounting) |
| Branch of foreign company | Parent company liability | 25.17% on India-source profits | Foreign companies entering India market |
| Public limited company | Limited | Same as Private Limited Company but stricter | Companies preparing for listing |
Which one should you pick?
- Freelance or one-person service in India? Self-employed structure if simple, Private Limited Company if you want liability protection.
- Software / e-commerce / agency? Private Limited Company — standard, scalable.
- Operating an existing foreign company in India? Branch (simpler) or subsidiary Private Limited Company (more substance).
- Planning to raise venture capital? Confirm investors accept India entities. Many require a US Delaware C-Corp flip — see US company formation.
- Holding company for IP or other companies? Private Limited Company with minimal substance requirements.
The Private Limited Company in one paragraph
Private Limited Company is India's primary limited liability vehicle. Minimum paid-up capital: nominal. Headline corporate tax: 25.17%. Domestic 22% + surcharge + cess = 25.17%. New manufacturing 15% (17.16% effective).. Banking accessibility: 7/10. Privacy: 4/10 (UBO public). Remote formation: yes. Processing time: 10 business days.
For US comparison, see India vs USA. For non-resident formation specifics, see forming a India company as a non-resident.