Choosing the right legal constitution for your business is one of the most critical early-stage decisions that impacts your project’s compliance burden, funding eligibility, taxation, liability exposure, and long-term scalability. Our Constitution Planning Advisory service helps promoters make an informed and strategic choice based on their business model, sector, funding goals, and ownership preferences.
Should you form a new company, use your existing business, or create a subsidiary or SPV for the project?
Which structure suits you best—Private Limited, LLP, Partnership, Proprietorship, or Section 8 Company?
New Entity vs. Existing Business or Subsidiary:
We evaluate whether it’s more advantageous to:
Set up a new company (for fresh branding, subsidy eligibility, or financial separation)
Use an existing business (to leverage existing licenses, credibility, and banking relationships)
Create a subsidiary or Special Purpose Vehicle (SPV) (ideal for diversification, JV projects, or risk isolation)
Selection of Suitable Business Structure:
Based on your operational model, investment requirement, promoter structure, and future plans, we help you choose the most suitable legal constitution:
Private Limited Company – Ideal for startups, growing businesses, and companies seeking external funding or limited liability
LLP (Limited Liability Partnership) – For professional or family-run ventures seeking liability protection with operational flexibility
Partnership Firm – Best for traditional businesses with limited partners and low compliance expectations
Proprietorship – Suitable for small, single-owner businesses; simple to operate but carries unlimited liability
Section 8 Company – Recommended for not-for-profits, NGOs, or CSR-linked entities aiming for tax exemptions and grants
Taxation & Compliance Planning:
We analyze:
Income tax implications (e.g., corporate tax vs. personal tax)
Annual compliance costs (ROC, audit requirements)
GST registration needs
Dividend distribution and profit repatriation structure
Funding & Subsidy Eligibility:
Many government schemes and financial institutions prefer or mandate specific structures (e.g., Pvt Ltd or LLPs over Partnerships/Proprietorships). We ensure your business is constitutionally eligible for:
Subsidies & grants
Bank/NBFC loans
Venture capital or angel funding
Risk, Liability & Ownership Planning:
We structure your constitution considering:
Personal liability protection
Flexibility in ownership transfers
Control & voting rights
Succession planning
New entrepreneurs launching fresh ventures
Existing businesses planning expansion or diversification
Startups aiming for funding or incubation
Family businesses exploring formalization or scaling
NGOs or social enterprises forming Section 8 companies
With our Constitution Planning Advisory, you gain clarity and confidence to choose the right legal vehicle that supports compliance, funding, growth, and risk management from day one.
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