CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Short answerA proprietorship is the lowest-cost and simplest but offers no liability protection and limited credibility for funding. A Private Limited company gives limited liability, a separate identity, easier funding and ESOPs, at the cost of more compliance and audit. Start as a proprietor to keep it small; choose Pvt Ltd to scale or raise money.
Proprietorship: simple, personal liability
Minimal setup and compliance, but your personal assets are at risk and investors won’t fund it.
Pvt Ltd: protected, scalable
Limited liability, credibility, funding and ESOPs — with audit and ROC compliance.