5 min read
When Should You Form a Private Limited Company? A Founder's Checklist
A Pvt Ltd company is not always the right first step. When it makes sense, what it costs in compliance, borrowing and tax, and when an LLP or firm is better.
CA Mayank Agarwal is a Bhopal-based Chartered Accountant, a member of ICAI since 2012, with nearly 14 years of experience in taxation, statutory audit, financial advisory and start-up consulting. He is also a certified Python developer and advises businesses on process automation and financial systems. He holds a rank in ICAI’s post-qualification Diploma in International Trade Laws and WTO, and ICAI certificates in Start-ups and Concurrent Audit of Banks. He leads the firm’s subsidy consultation work, guiding MSMEs, industrial units and early-stage ventures through central and state incentive schemes, project financing and institutional approvals. He speaks regularly at start-up conventions, trade bodies and industry seminars on fiscal policy, technology in finance and entrepreneurship, and writes articles for professional and business publications.
Based at our Bhopal office — 366, 2nd Floor, Vistaar, Rachna Nagar, Bhopal, Madhya Pradesh 462023
A Pvt Ltd company is not always the right first step. When it makes sense, what it costs in compliance, borrowing and tax, and when an LLP or firm is better.
A start-up claiming the 80-IAC holiday still pays MAT on book profit, and opting into 115BAA forfeits the holiday. Worked numbers on a ₹2 crore profit.