A SaaS business typically needs a Pvt Ltd — because raising equity, issuing ESOPs under s.62(1)(b) of the Companies Act 2013, and signing enterprise contracts all work cleanly through a company, and because the entity protects founders from product-liability claims. The recommendations tool pairs the structure with the licences that matter for your sector.

A consulting practice often fits an LLP: lower compliance, partner-based profit sharing, and no need for equity — registered under ss.3 and 7 of the LLP Act 2008, with each partner's profit share exempt in their hands under s.9(1)(i) of the Income-tax Act 2025 (formerly s.10(2A) of the Income-tax Act 1961). The recommendation flips to Pvt Ltd only if the practice plans to scale with outside capital.

A restaurant or retail business needs an entity that can own licences, lease premises, and hold inventory — usually a Pvt Ltd for liability protection, with FSSAI licensing under the FSS Act 2006, GST registration under the CGST Act 2017, and state trade licences on top. The tool flags the licensing stack alongside the entity pick so neither is missed.

Yes — for low-liability, low-revenue local service businesses (tailoring, tuition, small repair work), a proprietorship avoids all MCA compliance and the founder can file under the presumptive scheme of s.44AD of the Income-tax Act 1961. The recommendation switches to a formal entity when revenue approaches the GST threshold (s.22 CGST Act 2017) or the business takes on contracts and employees.

Regulated sectors bring their own registrations — a fintech lending business needs RBI NBFC registration under s.45-IA of the RBI Act 1934, a fund needs SEBI AIF registration under the SEBI (AIF) Regulations 2012, and manufacturing needs the Factory Act licences. The recommendations tool layers these statutory requirements on top of the base entity so the industry's real compliance stack is visible up front.