Should You Incorporate?

Register now
or wait?

5 questions. No account needed. We'll tell you if you actually need a company yet.

Step 1 of 5

What's your revenue in the last 12 months?

Common questions

Incorporate now or wait, statute-cited.

At what revenue should I stop being a proprietorship?+

Three thresholds matter: GST registration is mandatory once turnover crosses ₹40 lakh for goods (₹20 lakh for services) in a normal state under s.22 of the CGST Act 2017; the presumptive-tax scheme under s.44AD of the Income-tax Act 1961 applies up to ₹2 crore turnover; and beyond that, an audit is triggered. The checker uses your revenue band to decide whether an informal structure still holds.

When does an LLP beat staying informal?+

An LLP makes sense once you need limited liability, formal contracts, or multiple partners — but not the fundraising machinery of a company. It is registered under ss.3 and 7 of the LLP Act 2008 through the MCA21 FiLLiP process, with at least 2 designated partners (1 resident Indian) and annual Form 8 / Form 11 filings under ss.34 and 35 of the LLP Act 2008.

When is an OPC the right call?+

An OPC gives a solo founder the liability shield of a company without a co-founder — available under s.3(1)(c) of the Companies Act 2013 read with Rule 3 of the Companies (Incorporation) Rules 2014, with a nominee director appointed at incorporation. But an OPC cannot raise VC funding cleanly — if investor conversations are on the table, the checker routes you to a Pvt Ltd instead.

What pushes the verdict to Pvt Ltd?+

Four signals force the Pvt Ltd verdict: planning to raise or already raising capital, clients that require a registered company, revenue above ₹2 crore, or payroll hires — because only a Pvt Ltd (ss.2(68), 12 and 149 of the Companies Act 2013 read with Rule 38 of the Companies (Incorporation) Rules 2014) is built for equity, hiring, and formal counterparties at scale.

Can I stay informal and register for GST only?+

Yes — below the incorporation pressure points, a sole proprietor can register for GST once turnover crosses the s.22 CGST Act 2017 threshold, file under the presumptive scheme of s.44AD of the Income-tax Act 1961, and avoid MCA incorporation entirely. The checker's 'stay informal' verdict lists exactly those steps, and suggests re-checking as you approach ₹40 lakh revenue, payroll, or investor talks.