What is the Difference Between LLP and Partnership?

Feb 7, 2025
Private Limited Company vs. Limited Liability Partnerships

Choosing the right business structure is one of the most critical decisions when starting a business. The type of structure you choose will significantly impact various aspects of your business, such as ownership, liability, taxation, compliance, and governance.

Two popular structures in India are Partnership Firms and Limited Liability Partnership (LLP) Firms, which have unique advantages and limitations.

In this blog, we’ll explain the difference between an LLP and a partnership while diving deeper into both business structures. We'll compare their key features and help you determine which one might be the best fit for your business needs.

Table of Contents

Partnership Firm

A Partnership Firm is a business structure where two or more individuals join forces to own and operate a business. Here are the key aspects of a Partnership Firm:

  • Ownership: The business is collectively owned and managed by the partners.
  • Profit & Loss Sharing: Profits and losses are divided among the partners as per the partnership agreement.
  • Liabilities: Partners are personally liable for the firm's debts and obligations. This means their personal assets can be used to settle business liabilities.
  • Flexibility: Partnership Firms are relatively easy to set up and do not require mandatory registration (although registration is advisable for legal enforcement of partner rights).
  • Control: Decision-making and management are usually informal, with each partner contributing based on their expertise and resources.

Common Use Cases: Small businesses, family-owned enterprises, and local trading firms.

Limited Liability Partnership Firm

A Limited Liability Partnership (LLP) is a modern business structure that combines the benefits of a partnership with limited liability protection. Key features include:

  • Ownership: Like a Partnership Firm, an LLP is owned and managed by partners. However, the liability of each partner is limited to their agreed contribution.
  • Limited Liability: Unlike a traditional Partnership Firm, the personal assets of partners are protected. Partners are not liable for debts beyond their investment in the LLP.
  • Legal Identity: An LLP has a separate legal identity, meaning it can own assets, enter into contracts, and sue or be sued independently of its partners.
  • Compliance: LLPs must register with the Ministry of Corporate Affairs (MCA) and comply with annual reporting and audit requirements, depending on their revenue and capital.
  • Professional Use: LLPs are commonly used by professionals such as lawyers, accountants, consultants, and architects.

Common Use Cases: Professional services, consulting firms, and startups seeking a flexible yet protected structure.

Difference Between Partnership Firm and Limited Liability Partnership Firm

Below is a comparison table highlighting the key differences between the two structures:

Parameters Partnership Firm Limited Liability Partnership (LLP)
Legal Status No separate legal entity Separate legal entity distinct from its partners
Liability Unlimited liability Limited to the capital contribution
Registration Optional Mandatory registration
Registration Authority Registrar of Firms Registrar of Companies
Legal Name Can have any name Must have the word 'LLP' at the end
Management Managed by Partners Managed by Designated Partners
Compliance Minimal compliance; no annual filing needed Higher compliance; annual returns and audits required
Governance Governed by the Partnership Act of 1932 Governed by the Limited Liability Partnership Act of 2008
Foreign National Cannot form a partnership in India Can form an LLP together with an Indian resident
Taxation Each partner is taxed separately on their share of the business's profits. Partners are taxed only on the income they receive.
Dissolution Can be dissolved by the mutual consent of partners, court order, insolvency, etc Can be dissolved voluntarily or by the National Company Law Tribunal (NCLT) order
Use- cases Small-scale businesses or family ventures Startups, professional services, and businesses seeking scalability

Choosing between a Partnership Firm and an LLP depends on your business goals, risk appetite, and need for compliance. While Partnership Firms are simpler to establish, LLPs provide better legal protection and credibility, making them suitable for scaling businesses.

Frequently Asked Questions

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Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

Is Partnership and Limited Liability Partnerships the Same?

No, a Partnership Firm and a Limited Liability Partnership (LLP) are not the same. While both involve partnerships between individuals, they differ in terms of liability, legal status, and compliance requirements.

What is the Difference Between AOP and a Partnership Firm?

An AOP (Association of Persons) and a Partnership Firm are different in terms of purpose, structure, and taxation:

Parameters AOP (Association of Persons) Partnership Firm
Definition A group of individuals voluntarily coming together for a common purpose A business structure where two or more individuals collaborate to carry on a business to earn profits
Purpose Formed for a common objective, which may or may not include earning profits Specifically formed to carry out business activities and share profits
Registration No registration Registration is optional
Taxation Taxed as a separate entity under the Income Tax Act Partnership Firms are taxed separately, but partners are taxed on their share of profits

Can a Partnership Firm Be a Partner in LLP?

Yes, a Partnership Firm can become a partner in an LLP as per the Limited Liability Partnership Act of 2008. However, certain conditions must be met:

  1. The Partnership Firm must be legally registered.
  2. The LLP agreement must clearly mention the inclusion of the Partnership Firm as a partner.
  3. The individuals representing the Partnership Firm in the LLP must be specified.

This arrangement is often used to combine resources, skills, or expertise between an LLP and a Partnership Firm.

Which Is Better, LLP or Partnership?

Choosing between an LLP and a Partnership Firm depends on the nature of your business, the level of risk you're willing to take, and your long-term goals. Here’s a comparison:

Parameters LLP (Limited Liability Partnership) Partnership Firm
Liability Limited liability Unlimited liability
Legal Entity Separate legal entity Not a separate legal entity
Compliance Requires annual filings and statutory compliance Minimal compliance requirements
Taxation LLP is taxed as a separate entity, and profits distributed to partners are exempt Profits are taxed at the firm level and on individual partners
Suitability Profits are taxed at the firm level and on individual partners Ideal for small businesses or family-run operations with low compliance needs

An LLP is generally better for businesses seeking liability protection, scalability, and credibility, while a Partnership Firm is suitable for smaller businesses that prefer simplicity and minimal compliance.

Related Posts

A guide to Company Registration In USA from India: LLC or C-Corp?

A guide to Company Registration In USA from India: LLC or C-Corp?

In recent years, there has been a discernible shift among Indian entrepreneurs towards incorporating their companies in the United States. The surge in Indian startups seeking investment from U.S. sources has contributed significantly to this inclination to establish a foothold in the American market.

This trend is driven by several factors, including access to a larger pool of venture capital and angel investors in the U.S., as well as the desire to tap into the vast market potential.

The essentials of US Incorporations - documents, eligibility and process.

In today’s blog, we'll explore the essentials of U.S. incorporations, covering essential factors and offering insightful guidance on navigating cross-border requirements.

Table of Contents

Benefits of USA Company Registration

It is highly advisable to go for U.S. incorporation when aiming to raise capital from U.S. investors or penetrate the U.S. market with product sales. Beyond the inherent credibility associated with a U.S. business entity, it instills investor confidence and aligns with U.S. regulatory expectations.

  • It boasts a thriving and a diverse business ecosystem, providing access to a vast market, diverse consumer base, and a network of established businesses and startups.
  • Companies incorporated in the U.S. often find it easier to attract investment, whether through venture capital, private equity, or public markets.
  • It is home to renowned innovation hubs such as Silicon Valley, which fosters creativity, collaboration, and technological advancement. This can be especially beneficial for tech startups and businesses in emerging industries.
  • It offers a relatively straightforward process for business incorporation. Many states, like Delaware, have business-friendly regulations and efficient online platforms that facilitate the setup and management of companies.
  • While the U.S. tax system is complex, businesses may find advantages in various tax incentives and deductions, especially if structured as certain types of corporations.
  • It can serve as a strategic base for international expansion, providing a gateway to both North American and global markets.

Types for Company Registration in USA from India

The United States offers several types of legal structures for businesses, each with its own characteristics and implications. Here are some of the most common types:

•  Single-Person Businesses

•  S Corporations

•  C- Corporations (C-Corp)

•  Limited Liability Companies (LLCs)

•  Non-profit Organizations

Regarding U.S. business structures, two predominant forms of incorporation stand out: Limited Liability Companies (LLCs) and C-Corporations (C-Corps). These structures offer distinct features tailored to diverse business needs and goals.

  • If you want lower compliance and small franchise fees: An LLC may be a suitable choice, especially for small businesses or startups with simpler structures and a desire for reduced administrative burdens.
  • If you want to raise funds: If the goal is to attract external investment, issue stock, or go public in the future, a C Corporation is often more attractive to investors and provides the necessary flexibility for these activities.

Minimum Requirements to register a company in the U.S.

To register a company in the U.S., several essential criteria must be met.

  • Minimum Number of Individuals:
    At least one person is required to register a company in the U.S. This person can act as the sole owner or be part of a group of owners (members or shareholders), depending on the chosen business structure (e.g., LLC, corporation).
  • Registered Agent in Delaware:
    If choosing to register the company in Delaware, having a registered agent in the state is a legal requirement. The registered agent is a person or entity designated to receive legal documents, official correspondence, and other important information on behalf of the company.
  • U.S. Address:
    A U.S. address is required for official correspondence and legal purposes. This address can be either a physical location (such as a brick-and-mortar office) or a virtual address, depending on the nature of the business and the chosen state of registration.

Documents required for U.S. Incorporation

A succinct breakdown of the documents needed for the initial stages of business registration.

  • Name Approval:
    The process for name approval is straightforward. In Delaware, you can perform a real-time search for the desired business name and immediately reserve it if available. This reservation ensures that your chosen business name is secured for your use.
  • Director Details:
    Provide details about the directors or members of the company. This typically includes full names, addresses, contact information, and roles or titles within the company.
  • Number of Shares and Value Per Share:
    Specify the number of authorized shares the company is allowed to issue. Also, determine the par value or the assigned value to each share.

Process for Company Registration in the USA

A roadmap of Company registration in USA

Must-Have Documents After Incorporation

Here’s a list of documents that a business typically receives after the registration process:

1. Certificate of Incorporation

  • This document, issued by the state authorities, officially recognizes the establishment of the corporation. It includes important details such as the company's name, location, and date of incorporation.

2. EIN (Employer Identification Number)

  • The EIN is a unique identifier assigned by the IRS for tax purposes. It typically takes 3 to 4 weeks through standard processing, but an expedited option is available, reducing the timeline to 3 days if you already possess a Social Security Number (SSN).
    This unique identifier, similar to India's PAN (Permanent Account Number), is necessary for various business activities, including opening a bank account, hiring employees, and filing tax returns.

3. Bylaws of the Company (Similar to Articles of Association)

  • Bylaws are internal rules that govern the operation and management of the company. They outline procedures for meetings, decision-making, and other essential aspects of corporate governance.
    In some ways, they are similar to the Articles of Association mandated in India.

4. Banking Resolution

  • A banking resolution is a formal document that authorizes specific individuals within the company to open and manage bank accounts on behalf of the corporation. It provides clarity and legal authority for banking-related activities.

5. Common Stock Certificate

  • Common stock certificates represent ownership in the company. When shares are issued, these certificates are given to shareholders as evidence of their ownership stake in the corporation. They typically include details such as the shareholder's name, the number of shares, and the date of issuance.

Compliances for U.S.- Incorporated Companies

Let's dive into the detailed aspects of compliance for businesses in the US, particularly those with C-Corporation structures and operations in Delaware.

1. Federal Income Tax

  • The Federal Income Tax rate of 21% applies to C-corporations in the United States. They are required to file a tax return annually using the IRS Form 1120. This form outlines the corporation's income, deductions, credits, and taxes owed, etc.

2. Withholding Tax and Related Party Transactions Disclosure

  • Similar to Tax Deducted at Source (TDS), withholding Tax in the U.S. involves deducting a portion of payments made to non-residents for services, dividends, or interest. Additionally, disclosure of related party transactions is a key compliance requirement, ensuring transparency in financial dealings with affiliated entities.

3. Delaware State Franchise Tax

  • Delaware imposes an annual franchise tax on corporations, and the amount varies depending on the type and size of the corporation. The calculation is often based on factors such as authorized shares or assumed par value capital.

4. Delaware State Corporate Income Tax

  • In addition to federal taxes, C-Corporations operating within the state of Delaware are subject to state corporate income tax at a rate of 8.7% on income generated within the state.
    To meet state tax obligations, C-Corporations file the Delaware Form 1100, providing detailed information on income, deductions, and other relevant financial data.

5. Other Regulatory Compliances in Delaware

  • Beyond tax-related obligations, businesses in Delaware must adhere to additional regulatory requirements. This includes filing an annual report with the Delaware Secretary of State.

In a nutshell, be it India or the U.S., there will be a lot of compliances to keep a record of. By diligently meeting these obligations, you can fulfill legal mandates and contribute to a robust and trustworthy business environment.

Incorporation in U.S. vs India

When expanding operations from India to the United States, a common strategy involves incorporating a new U.S. company, followed by transferring shares from the Indian parent company (which must be a Private Limited Company) to the newly formed U.S. entity. The Indian company would become a subsidiary of the U.S. company, and there is no such limit to the number of subsidiaries an entity can have.

Difference between Company registration in India & USA

Keep in mind the compliances and FEMA guidelines to be adhered to during this process, which establishes the U.S. company as a subsidiary of its Indian counterpart, creating a legal and financial separation. The benefits of this approach include improved access to U.S. markets, legal autonomy for each entity, and strategic financial advantages.

Incorporation in the U.S. Company Registration in India
Time Duration 4–5 Days (To get a COI) 7–10 Days(To get a COI)
Cost Ideally, it ranges around $200–500, including Government Fees, Professional Fees, etc. Depends on company type, professional fees, stamp duties, etc.
Registered Agent Required for legal correspondence Not Mandatory
Ideal for If you want to raise funds in the U.S. or expand, then U.S. incorporation is advisable. If your targeted market is in India, then registering your company in India is advisable.
Name Approval Simultaneous real-time search and reservation. Company Name Search and Reservation happen separately
Documentation COI, EIN, Company Bylaws, etc. COI, Articles of Association (AoA), Memorandum of Association (MoA), Director's Identification Number (DIN), etc.
Compliances Federal and state-level compliances, annual reports, IRS filings Registrar of Companies (RoC) filings, Annual General Meetings (AGMs), Income Tax Returns

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*Prices and documents can differ based on the company type.

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Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

Nipun Jain

Nipun Jain is a seasoned startup leader with 13+ years of experience across zero-to-one journeys, leading enterprise sales, partnerships, and strategy at high-growth startups. He currently heads Razorpay Rize, where he's building India's most loved startup enablement program and launched Rize Incorporation to simplify company registration for founders.

Previously, he founded Natty Niños and scaled it before exiting in 2021, then led enterprise growth at Pickrr Technologies, contributing to its $200M acquisition by Shiprocket. A builder at heart, Nipun loves numbers, stories and simplifying complex processes.

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Partnership Deed for Firms in India: Format, Fees, Validity

Partnership Deed for Firms in India: Format, Fees, Validity

A Partnership Deed is a legal document that outlines the rights, responsibilities, and obligations of individuals forming a partnership.

Typically drafted at the beginning of the partnership, the deed includes essential details such as the business name, purpose, and location. It also incorporates various clauses that highlight details about the partners, including aspects such as profit-loss sharing, salary, interest on capital, drawings, and the procedures for admitting a new partner.

In this blog, we’ll talk about how the Partnership Deed acts as the foundation for all partnership operations.

Table of Contents

Format of a Partnership Deed

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The format of a partnership deed may vary based on the specific requirements of the partners and the nature of the business. However, a typical partnership deed includes the following essential elements:

  • Name of the Partnership:
    The official business name under which the partnership operates is stated, along with the physical address where the primary business activities occur. This section also highlights the duration of the partnership firm alongside the date of the commencement.
  • Details of the Partners:
    This section includes the full name, address, and relevant particulars of the Individuals participating in the Partnership.
  • Purpose:
    Here, the nature and scope of the business activities conducted by the partnership is clearly stated. The firm shall have the power to fulfill the objectives of thecompany and conduct any such lawful business activities.
  • Capital Contribution:
    The total capital of the firm and the individual share contributed by each partner are to be mentioned here. The contribution can be in cash, goods, or property on agreed values.
  • Profit and Loss Sharing:
    It clearly articulates the agreed-upon ratio or percentage in which profits and losses will be distributed among the partners.
  • Financial Decisions:
    It includes information such as the partners' salary and commission, permissive drawings from the firm for each partner, the interest payable to the firm on these drawings, partnership loans, and other relevant details.
  • Admission and Retirement of Partners:
    This part outlines the criteria and process for admitting new partners into the business. Similarly, it details the procedures for the retirement or withdrawal of existing partners.
  • Dispute Resolution:
    Procedures for resolving disputes among partners are established. This may include mechanisms for mediation or arbitration to address conflicts and maintain a harmonious partnership.
  • Dissolution:
    It states the conditions and procedures for the dissolution of the partnership which highlights the distribution of assets, settlement of liabilities, and the overall process of winding up the business.
  • Witnesses and Signatures:
    The partnership deed is formally executed with the signatures of all partners, and done in the presence of witnesses.

How to draft a Partnership Deed?

A partnership deed can be a verbal or written agreement outlining the rights, responsibilities, profit-sharing, and other obligations of the partners.

While it can be recorded verbally, it is highly advisable to formalize a written partnership deed with the Registrar of Firms as it aids in resolving potential disputes. It also proves beneficial for tax purposes and ensures the formal registration of the partnership firm.

  • The Partnership Deed, formulated by the partners, must be executed on stamp paper with a minimum value of Rs. 200, as per the Indian Stamp Act.
  • Each partner should retain a copy of the partnership deed for future reference.
  • Once stamped, the Partnership deed is attached with the application to the Registrar of Firms for formal registration and legal validation.

As per the Partnership Act, Registration of Partnership Firms is optional, but if you still choose to register your firm-

The application should be accompanied by essential documents, including a duly filled affidavit, a certified true copy of the Partnership Deed, and proof of ownership or a rental/lease agreement for the main business location.

Validity of the Partnership Deed

The validity of the firm is mentioned in the deed, whether it's for a limited period, for a specific project or for an unlimited period.

Note: A partnership deed that has been notarized alone does not hold legal validity in the event of legal disputes. However, if the partnership firm is formally registered with RoF, the partnership deed will be recognized as having legal standing.

Fees for the Partnership Deed in India

The Partnership Deed must be executed on a stamp paper with a minimum value of Rs. 200, as per the Indian Stamp Act.

However, Partnership registration fees vary among states due to different compliance requirements and stamp duty rates. The cost for registering a Partnership Firm ranges from Rs. 500 to Rs. 3000.

Note: Stamp duty is calculated based on partner contributions and follows state-specific regulations.

Alterations in the Partnership Deed

Partners have the flexibility to modify, alter, or change the partnership deed through mutual agreement. All partners are required to sign the amended deed.

Subsequently, the modified partnership deed should be registered at the Sub-Registrar's office, where the original deed was registered. Additionally, it is necessary to submit the modified deed to the Registrar of Firms for record-keeping purposes.

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Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

How to Register a Company for Consulting Services in India?

How to Register a Company for Consulting Services in India?

The consulting industry in India is booming for good reasons. As markets become more competitive and technology reshapes how we do business, companies are looking for specialists who can provide fresh perspectives, solve complex challenges, and help them grow faster. From early-stage startups trying to find product–market fit to large corporations aiming to improve efficiency, the demand for expert advice is higher than ever.

Consulting can be a highly rewarding career path if you have deep knowledge in a field, whether it’s finance, management, marketing, IT, or legal.

In this guide, we’ll explore the different types of consulting you can offer and provide a step-by-step process for registering your consulting company in India so you can focus on delivering value while your business stands on solid legal ground.

Table of Contents

Types of Consulting

Consulting services span multiple domains, each catering to a unique set of client needs. Here are some popular types of consulting and what they typically involve:

Financial Consulting

Financial consultants help individuals and organisations manage money more effectively. Services may include investment planning, tax optimisation, budgeting, cash flow management, and economic risk assessment. Clients often include SMEs, startups, large corporations, and even high-net-worth individuals.

Management Consulting

Management consultants focus on improving business performance and solving operational challenges. They analyse existing processes, identify inefficiencies, and recommend strategies to improve productivity and profitability. Clients are usually companies undergoing restructuring, scaling, or entering new markets.

Marketing Consulting

Marketing consultants help businesses create and execute strategies to attract, engage, and retain customers. Services include brand positioning, campaign planning, market research, and digital marketing strategy. Their clients range from small businesses to large enterprises looking to strengthen their market presence.

IT Consulting

IT consultants advise on technology adoption, infrastructure setup, software implementation, and cybersecurity. They work with businesses looking to upgrade systems, integrate digital tools, or protect against cyber threats. Common clients include startups, tech companies, and corporations undergoing digital transformation.

Legal Consulting

Legal consultants provide guidance on compliance, contracts, dispute resolution, and regulatory matters. They help businesses avoid legal risks and ensure operations are aligned with applicable laws. Their clients often include startups, corporates, NGOs, and individuals requiring legal clarity.

Legal Steps to Register Your Consulting Business

Starting a consulting business in India requires following specific legal procedures under the Companies Act, 2013. While you can set up as a sole proprietorship, registering as a Private Limited Company or LLP offers more credibility and growth opportunities.

Here’s a step-by-step breakdown of the company registration process:

Step 1: Get in Touch with an Expert

Engage a Chartered Accountant (CA), Company Secretary (CS), or a reliable online platform that specialises in company registration. They can guide you through choosing the right business structure, preparing documents, and ensuring compliance.

Step 2: Share the Information and Required Documents

Provide details such as your proposed company name, nature of business, registered office address, and personal KYC documents for all directors or partners. This typically includes PAN, Aadhaar, address proof, passport-sized photos, and, in some cases, bank statements.

Step 3: Obtaining the DSC of Directors

A Digital Signature Certificate (DSC) is mandatory for directors to sign and submit forms electronically on the Ministry of Corporate Affairs (MCA) portal. Each director must have their own DSC issued by a government-approved agency.

Step 4: Applying for Company Name Reservation

File an application through the MCA’s RUN (Reserve Unique Name) service or as part of the SPICe+ form. Choose a name that reflects your consulting services, complies with MCA naming guidelines, and isn’t already in use.

Step 5: Creation of Mandatory Documents (MoA and AoA)

Draft the Memorandum of Association (MoA) and Articles of Association (AoA).

  • The MoA defines your company’s objectives, including consulting services as your main activity.
  • The AoA outlines your company’s internal rules and governance structure.

Step 6: Submitting the Application for Company Registration

Complete the incorporation process by filing the SPICe+ form along with all required documents on the MCA portal. Once approved, you’ll receive your Certificate of Incorporation (COI), along with PAN and TAN. You can then proceed to open a current bank account and commence operations.

Frequently Asked Questions (FAQs)

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Register your Business at just 1,499 + Govt. Fee

Register your business
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Register your Private Limited Company in just 1,499 + Govt. Fee

Register your business
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Register your One Person Company in just 1,499 + Govt. Fee

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Register your Business starting at just 1,499 + Govt. Fee

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Register your Limited Liability Partnership in just 1,499 + Govt. Fee

Register your business

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

How to register a consulting company in India?

You can register a consulting company in India as a Private Limited Company, Limited Liability Partnership (LLP), or Partnership, depending on your goals.

Steps to register:

  1. Choose your business structure (Pvt Ltd, LLP, or Partnership)
  2. Get Digital Signature Certificates (DSCs) for all directors/partners
  3. Reserve a unique company name via the MCA portal (SPICe+ form)
  4. Draft the Memorandum of Association (MoA) & Articles of Association (AoA)
  5. File the incorporation form (SPICe+) with the Ministry of Corporate Affairs
  6. Obtain Certificate of Incorporation (COI) along with PAN and TAN
  7. Open a current bank account in the company’s name and start operations

If you prefer a quicker process without heavy compliance, LLP or Proprietorship can work, but for credibility and scalability, Private Limited Company is often the best choice.

How to start a job consultancy business in India?

A job consultancy connects job seekers with employers, helping companies find the right talent.

Steps to start:

  1. Decide your niche – IT hiring, executive search, entry-level recruitment, etc.
  2. Register your business – You can start as a Proprietorship, LLP, or Private Limited Company
  3. Apply for GST registration (mandatory if turnover exceeds ₹40 lakh or if operating interstate)
  4. Get a current account in your business name
    Sign agreements with companies for recruitment services
  5. Build a talent pool using job portals, LinkedIn, and direct applications

Ensure compliance with labour laws and data protection rules

How to register a service-based company in India?

A service-based company provides services instead of physical products — for example, consulting, marketing, IT services, event management, etc.

Steps to register:

  1. Select your business structure – Partnership, LLP, or Private Limited Company
  2. Obtain DSC
  3. Reserve the company name via MCA
  4. Draft MoA & AoA (for Pvt Ltd) or LLP Agreement (for LLP)
  5. File incorporation form with MCA
  6. Receive Certificate of Incorporation

Get PAN, TAN, and GST registration (if applicable)

Sarthak Goyal

Sarthak Goyal is a Chartered Accountant with 10+ years of experience in business process consulting, internal audits, risk management, and Virtual CFO services. He cleared his CA at 21, began his career in a PSU, and went on to establish a successful ₹8 Cr+ e-commerce venture.

He has since advised ₹200–1000 Cr+ companies on streamlining operations, setting up audit frameworks, and financial monitoring. A community builder for finance professionals and an amateur writer, Sarthak blends deep finance expertise with an entrepreneurial spirit and a passion for continuous learning.

Read more

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Smooth onboarding, seamless incorporation and a wonderful community. Thanks to the #razorpayrize team! #rizeincorporation
Dhaval Trivedi
Basanth Verma
shopeg.in
Exciting news! Incorporation of our company, FoxSell, with Razorpay Rize was extremely smooth and straightforward. We highly recommend them. Thank you Razorpay Rize for making it easy to set up our business in India.
@foxsellapp
#razorpayrize #rizeincorporation
Dhaval Trivedi
Prakhar Shrivastava
foxsell.app
We would recommend Razorpay Rize incorporation services to any founder without a second doubt. The process was beyond efficient and show's razorpay founder's commitment and vision to truly help entrepreneur's and early stage startups to get them incorporated with ease. If you wanna get incorporated, pick them. Thanks for the help Razorpay.

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Dhaval Trivedi
TBS Magazine
Hey, Guys!
We just got incorporated yesterday.
Thanks to Rize team for all the Support.
It was a wonderful experience.
CHEERS 🥂
#entrepreneur #tbsmagazine #rize #razorpay #feedback
Dhaval Trivedi
Nayan Mishra
https://zillout.com/
Smooth onboarding, seamless incorporation and a wonderful community. Thanks to the #razorpayrize team! #rizeincorporation
Dhaval Trivedi
Basanth Verma
shopeg.in
Exciting news! Incorporation of our company, FoxSell, with Razorpay Rize was extremely smooth and straightforward. We highly recommend them. Thank you Razorpay Rize for making it easy to set up our business in India.
@foxsellapp
#razorpayrize #rizeincorporation
Dhaval Trivedi
Prakhar Shrivastava
foxsell.app
We would recommend Razorpay Rize incorporation services to any founder without a second doubt. The process was beyond efficient and show's razorpay founder's commitment and vision to truly help entrepreneur's and early stage startups to get them incorporated with ease. If you wanna get incorporated, pick them. Thanks for the help Razorpay.

#entrepreneur #tbsmagazine #rize #razorpay #feedback
Dhaval Trivedi
TBS Magazine
Hey, Guys!
We just got incorporated yesterday.
Thanks to Rize team for all the Support.
It was a wonderful experience.
CHEERS 🥂
#entrepreneur #tbsmagazine #rize #razorpay #feedback
Dhaval Trivedi
Nayan Mishra
https://zillout.com/