15/03/2025
DO NOT register your agency as a Private Limited Company.
Especially if you’re just starting out.
Praper Media is at 4 Cr ARR, and still a sole proprietorship.
But most new agency owners rush to get a Pvt Ltd tag thinking it makes them look "official."
In reality - this is a big mistake.
Here’s why I’m glad we’re still a sole proprietorship.
1. Less paperwork, more focus on growth
Pvt Ltd companies have strict rules -
yearly audits, complex filings, and legal headaches.
Sole proprietorships are super easy to set up,
and have 90% less compliance.
2. You’ll save money on taxes
Pvt Ltd companies pay high corporate tax (upto 30%),
and you’ll get taxed again when you take money out.
As a sole proprietor, you pay personal income tax,
which is much lower when starting out.
3. A Sole Proprietorship keeps you flexible
Your services, pricing, and niche will evolve.
As a sole proprietor, you can adapt quickly.
As a Pvt Ltd, changing your service category is expensive and slow.
4. Financial compliance is costly
You’ve probably have to hire a CA in either case.
But a Pvt Ltd needs mandatory audits and compliances.
So you’ll end up paying your CA at least ₹20k / month.
For a sole proprietorship, it’s doable in ₹5k while starting.
5. Upgrading is easy. Undoing it is a nightmare.
You can switch from sole proprietorship to Pvt Ltd anytime!
But closing a Pvt Ltd is slow, expensive, and painful.
-
Your clients hire you for your work, not your paperwork.
In my experience, nobody has ever said “we only work with Pvt Ltd companies”.
So keep things simple. Focus on sales, service, and team building.
The time and money savings for me are easily worth 10 lakh/year - and I highly recommend this approach.
What is your business registered as? Are you happy with your choice?
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