This is a decision every entrepreneur needs to make early in the process. Obviously you need to understand the options in hand and their pro's and con's. I must say, both you and me are lucky. There is an excellent website for reference (created by Government of India) at http://business.gov.in/starting_business/location_industry.php.
The forms a business can take are:
- Private Limited Company
- Partnership Firm
- Public Limited Company
- Join Hindu Limited Business
I chose a 'Private Limited Company' mainly because most of the clients are willing to work only with a 'Private Limited Company' or a 'Public Limited Company', not to forget the excellent governance framework the government puts in place in the form of the Company Law.