New businesses · Anyone formalising an existing informal business
Choosing a business structure
The legal structure you register under shapes your liability, tax treatment, ability to raise funding, and compliance burden — it's usually the first formal decision a new business makes.
This section is general educational orientation, not legal, tax, or professional advice. Registration thresholds, rates, and rules change and often vary by state — always confirm current requirements with a qualified chartered accountant, company secretary, or lawyer before acting.
Sole proprietorship
The simplest structure — you and the business are legally the same entity. Easiest to start, but you carry unlimited personal liability for business debts.
Partnership
Two or more owners share ownership, profit, and liability under a partnership deed. Like a proprietorship, liability is typically personal and unlimited unless structured otherwise.
Limited liability partnership (LLP)
Combines partnership flexibility with limited liability — partners generally aren't personally liable beyond their investment, subject to the specific agreement and law.
Private limited company
A separate legal entity from its owners, offering limited liability and generally seen as more credible to investors and larger clients, at the cost of more compliance and reporting.
What to weigh
Consider your liability comfort, whether you plan to raise outside investment, how much compliance overhead you can handle, and your growth ambitions — a chartered accountant or company secretary can help match the structure to your actual plans.