Question 1

Which business structure is best for me?

Accepted Answer

There is no single best structure — there is the one that matches how you will operate. The four questions that actually decide it are: how many founders there are, whether you need your personal assets protected, whether you will raise equity investment, and how much compliance you are willing to carry. Use the selector above for an indicative answer, then bring your specifics to the call.

Question 2

What is the difference between an LLP and a private limited company?

Accepted Answer

Both give you limited liability and a separate legal identity. A company issues shares, so it can take equity investment, grant ESOPs and be valued in a priced round — but it carries a statutory audit regardless of turnover, board meetings and heavier ROC filings. An LLP is governed by an agreement between partners, has lighter compliance and no audit until the prescribed turnover or contribution limits are crossed, but it cannot issue shares. If you are raising money, that single difference usually settles it.

Question 3

Can I start as a proprietorship and convert later?

Accepted Answer

Yes, and many businesses do. A proprietorship can be converted into an LLP or a company later, and an LLP can be converted into a company. Conversion is a fresh incorporation with assets and liabilities transferred, so it costs time and fees and can have tax implications if conditions are not met. Keeping business and personal money separate from day one makes it far cheaper when the time comes.

Question 4

How long does registration take?

Accepted Answer

We do not quote a fixed number of days, because the time is set by name approval and by government processing, not by us. What we do commit to is that your documents and forms are complete and correct on first submission — most delays come from resubmissions, not from queues. You get the realistic range for your entity type on the consultation call.

Question 5

Do I need GST registration immediately?

Accepted Answer

Not necessarily. GST is triggered by turnover crossing the threshold, or by a compulsory trigger such as inter-state supply of goods, selling through most e-commerce operators, or liability under reverse charge — not by incorporating. Many businesses register voluntarily anyway because their customers are registered and want input tax credit.

Question 6

How many people do I need to start a company or LLP?

Accepted Answer

A private limited company needs at least two shareholders and two directors, and at least one director must be resident in India. An LLP needs at least two partners, of whom at least two are designated partners with at least one resident in India. If you are genuinely alone, a proprietorship or a one person company are the routes worth comparing.

Question 7

What is SPICe+ and what does it cover?

Accepted Answer

SPICe+ is the integrated incorporation form for companies. Alongside the certificate of incorporation it allots PAN, TAN and DIN for the proposed directors, and through the linked AGILE-PRO-S form it can also handle EPFO and ESIC registration, profession tax where applicable, and a bank account opening request. It replaces what used to be several separate applications.

Question 8

How is an LLP incorporated?

Accepted Answer

Through the FiLLiP form, which reserves the name if not already reserved and allots the LLPIN along with DPINs for the designated partners. The LLP agreement then has to be filed in Form 3 within 30 days of incorporation — missing that window attracts a daily penalty, so it is not a formality to postpone.

Question 9

Does a partnership deed have to be registered?

Accepted Answer

Registration with the Registrar of Firms is optional, but an unregistered firm is restricted in enforcing its contractual rights in court against third parties or between partners. Given the cost of registering is small and the consequence of not doing so appears exactly when there is a dispute, we usually recommend it.

Question 10

How do I choose a company name that will be approved?

Accepted Answer

The name must not be identical or too similar to an existing company or LLP, must not infringe a registered trademark, and must not use words that need prior approval. We run a name and trademark search before filing and keep alternatives ready, because a rejected name means starting the reservation again.

Question 11

Can I register my business at my home address?

Accepted Answer

Yes, in most cases. You will need proof of the address — a recent utility bill — and a no objection certificate from the owner if the premises are not yours. Some registrations and some landlord agreements have their own restrictions, which we check before filing.

Question 12

What is MSME or Udyam registration and should I get it?

Accepted Answer

Udyam is the government's registration for micro, small and medium enterprises, classified by investment in plant and machinery and by annual turnover against the thresholds in force. It is free, it is quick, and it brings you within the statutory payment protections for micro and small suppliers — which in turn affects when your buyers can claim the expense. For most small businesses there is no reason not to have it.

Question 13

What is Startup India recognition and do I qualify?

Accepted Answer

DPIIT recognition is available to a private limited company, LLP or registered partnership within the prescribed period from incorporation, below the prescribed turnover limit, and working towards innovation or improvement of products, processes or services. Recognition brings self-certification on certain labour and environment laws and access to schemes; the income tax holiday under section 80-IAC is a separate approval with stricter conditions.

Question 14

Is a trademark the same as registering my company name?

Accepted Answer

No, and this catches people out. Incorporating gives you the right to operate under that name at the MCA; a trademark gives you the right to stop others using it for your class of goods or services. A company name can be approved and still infringe someone's mark. If your brand matters, file the trademark alongside incorporation rather than after.

Question 15

How are the different structures taxed?

Accepted Answer

A proprietorship is taxed in your own hands at individual slab rates. A partnership firm and an LLP are taxed at a flat rate, plus surcharge and cess, with partner remuneration and interest deductible within the limits of section 40(b). A company is taxed at its applicable corporate rate, with concessional regimes available on conditions. The right comparison is total tax including how money reaches you personally, not just the headline rate.

Question 16

Does my new company need an audit even with no revenue?

Accepted Answer

Yes. A company requires a statutory audit under the Companies Act regardless of turnover, and its first auditor must be appointed within 30 days of incorporation. An LLP is audited only once the prescribed turnover or contribution limits are crossed. A tax audit under section 44AB is separate and depends on turnover.

Question 17

What compliance follows after the certificate is issued?

Accepted Answer

For a company: appoint the first auditor, open a current account, file INC-20A before commencing business, hold board meetings, maintain statutory registers, and file the annual ROC returns and financial statements. For an LLP: file the agreement in Form 3, then the annual Form 11 and Form 8. For all structures, income tax returns and any GST or TDS obligations continue on their own calendar.

Question 18

What is DIN and DSC, and who needs them?

Accepted Answer

A digital signature certificate signs the filings electronically, and every proposed director or designated partner needs one. A director identification number is the unique number allotted to a director; for a new company it is allotted through SPICe+ itself, and for an LLP the designated partner number comes through FiLLiP. Both are obtained as part of the incorporation, not separately in advance.

Question 19

Do I need a current account, and can I use my savings account?

Accepted Answer

You need a current account in the business or entity name. Running business receipts through a personal savings account creates problems with your bank, with GST reconciliation, and with proving which income is business income when the department asks. Open it as soon as your registration documents are in hand.

Question 20

What happens if I stop the business — can I close the registration?

Accepted Answer

Yes, and you should. A company or LLP that simply stops filing accumulates penalties and can lead to director disqualification. There are formal routes — striking off for a company, and the equivalent process for an LLP — with their own conditions and pending-filing requirements. Closing properly is much cheaper than being struck off involuntarily.

Question 21

Can a foreign national or NRI be a director or partner?

Accepted Answer

Yes, subject to conditions. A company must have at least one director who is resident in India, and an LLP at least one resident designated partner. Foreign investment is also subject to the FDI rules for your sector and to reporting with the RBI. If any founder is non-resident, tell us at the outset — it changes both the documents and the filings.

Question 22

What documents do I need to start?

Accepted Answer

For every structure: PAN, Aadhaar, a photograph and address proof for each founder, plus proof of the business address with a utility bill and an NOC if the premises are rented. Companies and LLPs need additional documents including the subscriber and director declarations. The full list depends on the entity type, and we confirm it before you upload anything.

Question 23

Can I register a business while I am employed elsewhere?

Accepted Answer

Legally there is no bar on being a director, partner or proprietor while employed, but your employment contract may restrict it and some employers require disclosure. That is a contractual question rather than a registration one, and it is worth resolving before you file rather than after.

Question 24

What does MyMoneyNest charge for registration?

Accepted Answer

A fixed professional fee per structure, quoted in writing after the consultation. Government fees and stamp duty vary by state and by authorised capital and are billed at actuals, shown separately so you can see exactly what is a government charge and what is our fee. Nothing is added later.

Start your business on the right foundation.

Which structure should you register?

Your recommendation appears here

Proprietorship

Partnership

LLP

Private Limited

Proprietorship registration

Partnership firm

LLP registration

Private limited company

MSME registration

Startup India registration

Trademark registration

PAN & TAN assistance

Advice first, filings second

Step 1: Consultation

Step 2: Structure selection

Step 3: Document collection

Step 4: Application preparation

Step 5: Government filing

Step 6: Certificate issued

Step 7: Post-registration guidance

What to keep ready

Starting up, answered plainly

Ready to start your business?