If you are just looking for SharePoint as a document management system then first look at both plan in details:
SharePoint Online Plan-1
Services Provided in this plan:
SharePoint & OneDrive
License Cost: 330 INR /User/Month
Major features under this plan are:
1 TB of OneDrive storage per user
Share files securely inside or outside your organization
Sync local copies of files or folders for offline viewing and editing
on Mac or PC
Co-author in real time in familiar Microsoft Office apps
Inform and connect your people with intranets and portals
Tell your story with beautiful communication sites
Use team sites to connect teams to content, expertise, and processes
Organize and manage content in libraries and lists with metadata,
records management, and retention policies
Move and manage files between OneDrive and SharePoint
Search and discover relevant people and important content when you
need it most
Navigate your team sites and intranet with the SharePoint mobile apps
for Android™, iOS, and Windows or OneDrive mobile apps for Android™,
iOS and Windows5
FastTrack deployment support with purchase of 50+ seats at no extra
24/7 phone and web support
Licensed for commercial use
Limitation on this plan
- We cannot install any office product
Office 365 Business Essentials
Major services are:
Key features in this plan:
Host email with a 50 GB mailbox and custom email domain address.
Create a hub for teamwork to connect your teams with Microsoft Teams.
Access web versions of Office apps: Outlook, Word, Excel,
PowerPoint, OneNote (plus Access and Publisher for PC only).
Store and share files with 1 TB of OneDrive cloud storage.
Host online meetings and video conferencing for up to 250 users.
Get help anytime with around-the-clock phone and web support from
License Cost: 125 INR /User/Month
Here the license cost is lesser than the SharePoint Online Plan-1
We can go with the Office 365 Business Essentials plan as we are getting more services (Microsoft Teams which is very important for the communication, Exchange) than the other plan SharePoint Online Plan-1 with the less price.