Entity incorporation in India

What is a Proprietorship Firm Registration?

You’ve jumped into the business world for yourself. You don’t have excess paperwork to start a sole proprietorship. But there are some important things you need to know before starting your journey in entrepreneur’s world.

A sole proprietorship is most preferred for of business entity as it is simplest and easiest form of business to register and to maintain. There is no formal set of rules and regulation for sole proprietorship registration. However, in order to run a business there are certain requirements that are needed to fulfill.

A sole proprietorship is kind of business entity which solely owned, controlled and managed by a single person.  It is the easiest way of running business, with the ease of registration process and with lease compliances responsibilities.

Sole proprietorship is the most common form of business practiced in India and is not governed by any specific book of laws. Proprietor has the whole rights of the business to himself in terms of legal formalities, decision making, finance etc.

There is no limited liability in case of sole proprietorship. As the proprietor and the proprietorship firm is treated as the same entity, the person who manages the business is the sole director as well as the shareholder and the proprietor can also sign the agreements or contacts in his name even if the business is registered under any other name. Also, the proprietor can use their personal accounts requirements.

Any individual who is want to commence a business with low capital should choose this kind of business form. Sole Proprietorship business is mostly preferred by small businesses holders such as retail, wholesale, etc. Such businesses have the simple business plan, nominal or the least financial risk and have small product market. The business with a little or minimal capital requirements can also prefer to start their work as Sole Proprietorship.

Nowadays, Proprietorships are also required to register itself under Tax laws such as GST Registration, if it falls under a certain category. A sole proprietor registration can be done by registering their business in –

    • GST registration
    • MSME registration
    • Shop and Establishment

There are different registrations, licenses and permits to start your business that will be required along with the above registrations. This requirement depends on the kind of business a individual wants to run. For example, to start your food business as a proprietorship, you might need to register with FSSAI or get FSSAI License.

Is a sole proprietorship right for you to start?

If you’re into business and haven’t created a formal business structure, then probably you’re already working as a sole proprietor– Next step is to understand various implications.

What are the Benefits under Proprietorship Registration –

    • Low tax liabilities
    • Easy to control as managed by single promoter
    • Freedom to choose any business name but not registered by a company
    • Easy to start with the minimal registration process
    • Easy to shut down the company with very less compliances
    • Taxes – All business profits are personal income for a proprietor and pay self-employment tax on those profits

Steps to Apply for Sole Proprietorship

    • Create order on our Website
    • We’ll collect all your documents and file them directly with the authority
    • You’ll receive your completed Sole Proprietorship Company package by mail

Documents Required, Compliance & Taxes

Documents Required to Regsiter Sole Proprietorship Firm

    • Voter’s ID/Passport/Driver’s License
    • Passport-sized photographs
    • PAN Card
    • Latest Bank Statement/Telephone or Mobile Bill
    • Rental agreement or sale deed (in case of Shops & Establishment Act Registration).

Compliances Required by a Proprietorship Firm –

    • TDS Return Filing
    • Filing Income Tax Return
    • GST Compliances
    • Drafting of Financial Statements
    • Tax Audit Compliance
    • Documentation of invoices of sales and purchases


    • All business profits are personal income for a proprietor and pay self-employment tax on those profits.

Private Limited Company Registration in India

A Private Limited Company is a privately maintained small business existence, which is one of the highly recommended means to start a business in India. The Companies Act 2013 governs private limited company registration in India.

While, minimum 2 shareholders are required to start a private company, while the higher limit of members are 200 as per the Companies Act, 2013. If a private limited company faces financial risk, its shareholders are not subject to sell their personal assets, i.e. they ought to have limited liability.

For online company registration, there must be a least of 2 directors while maximum 15 directors can be appointed in a company. Proposed director must have attained age of 18 years. A foreign national can also become a director of private limited company in India.

There is no minimum paid-up capital required for a private limited company registration. Every private limited company must use “pvt.ltd.” after their name.

A private limited company has never-ending existence. A private limited company holds on existing even in the case of death or bankruptcy of its Members.

A private limited company does not have any relationship with the public; they aren’t permitted to ask for any collateral from the public or public sectors. In a private limited company, people are not entitled to transfer shares, which protect takeovers of private limited companies from big enterprises.

Benefits – Why one should go for Private Limited Company Registration in India?

Starting a private limited company offers many advantages. Some of them are as follows:

    • A registered private limited company increases the credibility of your business.
    • Help owners from personal liability and protects from other risks and losses.
    • Draws more customers
    • Ease in obtaining bank credits
    • Offers limited liability to preserve your company’s assets
    • Greater funds supplement and more attractive stability
    • Enhance the potential to grow big and expand

Now, let’s discuss some of the benefits in detail;

    • Limited Liability: The responsibility of the members of a private limited company is restricted to their share only as the private limited company is a separate legal entity.
    • Separate Legal Entity: A private limited company is a separate legal entity which posses all the rights to sue or to be sued. It acts an artificial person which can buy a property on its own name.
    • Credit Availability: A private limited company can obtain funds from the debentures as well as the stockholders. Registered Private limited company is considered as a corporate entity that attracts various angel investors and venture capitalists that helps them to expand and raise their funds for the growth of their business.
    • Perform International: The private limited companies supports Foreign Direct Investment which other type of firms require appropriate licensing/Liaising and approval from the administration for foreign investments.
    • Perpetual Existence: A private limited company has a lifelong existence. Private limited companies are considered as separate legal entities and are separate from the existence of their owners which means they cannot be dissolved or end because of the death, retirement or insanity of any of their member/ director/ shareholder.
    • Enhanced Value In Market: A registered private limited company is considered more trustworthy as compared to the non-registered ones. Information regarding the registration of private limited company can easily be obtained from the website of Ministry of Corporate Affairs. Vendors, suppliers and investors trust them over the other business structures. As a result, it enhances the brand value of the company amongst the customers and other investors and suppliers.
    • Ease In Transfer Of Ownership: It is quite easy to transfer equity to new members and issue fresh shares in private company.

What are the basic requirements of Online Private Limited Company Registration in India?

There are few requirements to be known before initiating a Private Limited Company in India;

    • The private limited company must have a unique name which should not be same as any other registered company and trademark.
    • It is mandatory for a private limited company to have a minimum two directors.
    • As well as it is necessary to keep in mind that the private limited company should have minimum two shareholders.
    • All directors & members of private limited company should have digital signature certificate which will be used to register a private limited company.
    • There is no minimum capital required for initiating a private limited company.
    • The process of online company registration is quite simple; make sure that you have a unique name for your company which will surely help you with quick company registration.
    • You must avoid any offensive name for your private limited company registration.
Public Limited Company Registration

Public limited companies enjoy all the rights of a corporate entity with limited liabilities and it is an ideal choice for the small and medium scale enterprises who wish to raise the equity capital from the general public.

Below we are going to provides full knowledge of the features, procedure and document requirement for Public Company Registration.

What is a Public Limited Company?

Just like other companies, Public Limited Company is also registered as per the rules and regulations of the Companies Act, 2013. A public Company enjoys the benefits of limited liabilities for its members and has rights to sell its shares for raising the capital of the company. It can be incorporated with a minimum number of three directors and has more stringent rules and regulations as compared to a Pvt. Ltd. Company.

It must have a minimum number of seven members whereas there is no limit for the maximum number of members. It provides all the benefits of a private limited company along with more transparency and easy transferability of ownership and shareholding. Name, shares, formation, number of members, management and directors, etc differentiates Public limited company from the private limited companies.

Documents Required for Public Limited Company Registration

An applicant has to collect all these documents to file along with the incorporation application:

    • Identity Proof such as Aadhar card, PAN card, Driving License, Voter Id of all the designated directors and shareholders.
    • Address Proof of all the proposed directors and shareholder of the company.
    • PAN card details of all the directors and shareholders
    • Utility bill such as telephone, gas, water or electricity bill of the registered office as a residential proof of the business place. It should not be older than 2 months.
    • An NOC or No Objection Certificate from the landlord of the business place.
    • DIN or Directors Identification Number of all the designated directors
    • DSC or Digital Signature Certificate of the designated directors
    • Memorandum of Association (MOA) and Article of Association (AOA)
Features of Public Limited Company Registration

Here are some important features of Public Limited Company:

  • Number Of Directors In The Company: As stated in the provisions of Companies Act, a public company must have a minimum number of 3 directors to incorporate a company whereas there is no restriction on the maximum number of directors.
  • Name Of The Company: All the Public limited companies must add “Limited” word at the end of their name. it is denoted as an identity of a public company.
  • Prospectus Of The Company: Prospectus of the company is mandatory for the public limited companies. It is issued by the proposed company for its general public. It is a note of comprehensive statements of works and affairs of the company. However private companies have no such compliances as they don’t have rights to invite the public for their shares.
  • Paid-Up Capital: As per the requirements of the act, no minimum capital required for the registration.
What is the difference between the Public limited Company and Private Limited Company?

There are various points of differences between both these companies. Here are some chief differences between both:

Point Of DifferencePublic Limited CompanyPrivate Limited Company
  • Minimum: 7
  • Maximum: No Limit
  • Minimum: 2
  • Maximum: 200
DirectorsMinimum: 3

Minimum: 2

Public InvitationsYesNo
Minimum Capital IncomeNoNo
Issuance Of ProspectusRequiredNot Required
Name DifferencesMust have “Limited” at the end of its nameMust have PVT LTD at the end of its name
Mandatory Statutory MeetingYesNo
Managerial RemunerationsThere are no as such restrictionsCannot exceed the limit of 11/% of the net profit
Stock ExchangeIs listed on stock exchange and stock trade is carried out publicly.Not listed on stock exchange neither carry out stock trade publicly.

Benefits of Public Limited Company Registration

Here are the benefits provided to the company with Public Limited company registration

  • Limited Liabilities For The Shareholders Of The Company: Shareholders of the public company enjoy the benefits of limited liabilities under which their assets are safe and cannot be used to clear the debts and losses of the company. Despite of it, the shareholders are responsible for their own legal offenses. All the members, directors and shareholders enjoy this right and their assets cannot be seized by any bank, creditors or government bodies.
  • Perpetual Succession: A public limited company is considered as a corporate body that has perpetual succession. Means in case of death, retirement, insanity, and insolvency of one or more members/ shareholder/ directors, the company still continue its existence.
  • Improved Capital Of The Company: In a public limited company, the general public is invited to buy the shares of the company. Hence, anyone can invest in a public company that improves the capital of the proposed company.
  • Borrowing Capacity: A public company can enjoy unlimited sources for borrowing funds. It can issue equity, debentures and can accept the deposits from the general public by selling its shares. Moreover, most of the financial institutions find public companies more prominent than other unregistered companies.
  • Fewer Risks: Since public companies can sell their shares to the public, it lesser the scope of unsystematic risks of the market.
  • Better Opportunities For Growth And Expansion Of The Company: Fewer risks lead to better opportunities so that the company can grow and expand by investing in new projects from the funds raised by selling its shares in the market.
One Person Company Registration

Companies Act 2013 gave birth to the concept of One Person Company. Section 2(62) of Companies Act defines ‘One Person Company’ as “a company run by a single person who is acting as a shareholder and director at the same time”. One Person Company Registration has lower compliance as compared to a Private Limited Company.

Entrepreneurs in the initial stage of their business prefer to create OPCs instead of sole proprietorship business because the advantages that OPCs offer.

What is OPC?

OPC or One Person Company can be formed with a single person who is the owner and director of the company. It was introduced under the Company’s Act, 2013. One Person Company Registration is a type of sole proprietorship business in the form of a company that gives complete authority to the single person to run the business while limiting his liabilities and duties for the business.

Benefits of One Person Company Registration

Mostly business personnel prefer to register a Private Limited Company because of its exclusive benefits but they are unaware that One Person Company Registration can provide them better opportunities with very less compliance.

Some Amazing Benefits Of OPC Registration:
  • Ease In Funding: Just like a private limited company, OPC can also raise its fund through financial institutions, angel investors, venture capitals, etc. An OPC can also graduate itself into a Private Limited Company to raise its funds.
  • Better Opportunities: OPC has better opportunities and is benefitted with limited liability according to which the company would be limited to the values of the share you hold in it. One Person Company Registration gives you more chances to take risks and explore better opportunities without any pressure of losing on personal assets. Hence, it is an encouraging option for the young, new and innovative entrepreneurs.
  • Incorporation With Least Requirements: No one can beat OPC when it comes to starting a company with the least requirements. You can start an OPC
  • This case, the shareholder and director can be the same person and should be a citizen of India. Due to little compliances and burden, a person has more time to focus on his company and functional areas.
  • Benefits For Small Scale Industries: An OPC can avail all the benefits provided to small scale industries such as easy funding without depositing security to certain limits, loans at lower interest rates, benefits under foreign trade policy, etc. These benefits play a crucial role in the progress of the company in its initial days.
  • Recognized As A Trustful Separate Legal Entity: Any business that is registered under the Company Act, 2013 and has a separate legal entity and is considered as more trustworthy as compared to the non-registered ones

What are the Documents Required for OPC Registration?

OPC registration is an easy procedure but to accomplish it you need to collect all the given below documents.

  • Identity Proof Of The Director And Nominee: You have to submit an identity proof of the director and nominee. It can either be their voter card, aadhar card, driving license, PAN card, etc.
  • Memorandum Of Association (MOA) And Article Of Association (AOA): Both of these documents are very important and submitted during the registration process. Make sure to highlight all the objectives of your company before submission.
  • Consent Of The Designated Nominee: As discussed earlier, one director and a nominee are required to start an OPC. In case of any mishap, the nominee has the authority to take place of the director so that the working of the company won’t be affected. The consent of the designated nominee is filed through the form INC-3. Nominee too has to submit his/her PAN card and Aadhar card for proceedings.
  • Affidavit Of Nominee And Director: The designated director and nominee have to submit their affidavit in form INC-9 and DIR-2
  • Residential Proof Of The Office: Residential proof of the place where business activities are performed is submitted at the time of registration. It can be any utility bill (electricity, gas, telephone) not older than two months attached with the proof of ownership along with a No Objection Certificate. In case you are working on a rented property, you will have to submit the rent agreement along with all the documents.
  • PAN Card: A copy of the PAN card of the director and nominee would be submitted during the OPC registration process.
  • Passport Size Photographs: Passport size photographs of the designated director and nominee would be attached along with the form.
  • DSC And DIN: Both these documents are essential for the OPC registration purpose. DSC is used to sign the online documents while DIN provides a unique identification number to the director.
What is the Eligibility Criterion for Obtaining OPC Registration in India?

For OPC Registration You Have To Fulfill The Following Conditions:

Only a person who is a citizen of India

    • Can incorporate an OPC
    • Can be a nominee for the member of the company
    • He/She should be staying in India for at least 182 days from the prior one year.
    • In case the turnover limit of OPC exceeds Rs 2 crores, it has to be turned into a Private limited or a Public Limited company within a time duration of 6 months
Salient Features of One Person Company Registration
  • New Concept: OPC is a new concept governed by the Ministry of Corporation under the Companies Act, 2013.
  • One Shareholder: It requires only one shareholder to establish a One Person Company in India. The shareholder must have stayed in India for the minimum period of 182 days, hence should be an Indian resident.
  • An Immediate Nominee: Though the company can be started with a single person there should be a nominee who can take the responsibility of the shareholder in the extreme case of death or incapacity. The nominee should be an Indian citizen and has to give his/her consent as a nominee of the OPC shareholder. Under OPC registrtaion a company acts like a separate legal entity.
  • One Director: A private limited company requires a minimum number of two directors while public limited requires 7 but OPC can be formed with minimum one director who himself can be the shareholder and owner of the company. The maximum number of directors an OPC can have is 15.
  • Fewer Compliances: As per the act, one person company can be formed with one single member and director, therefore, has less compliance as compared to a private limited company.
  • Separate Legal Entity: Just like private and public limited companies, OPC is also a separate legal entity.
  • Limited Liability: Under One Person Company registration a company enjoys benefits with the limited liability of its directors according to which there personal assets and funds cannot be used to incur the debt of the company.
Registration Procedure of One Person Company

OPC registration is an online procedure, done as per the provisions of Companies Act, 2013. Here are the steps you need to follow to get your registration done:

  • Apply For DSC: DSC is obtained by the director to sign all the online documents. It can be obtained from nearby agencies; the fees of obtaining DSC vary from agency to agency.
  • Application To Obtain DIN: Director’s Identification Number can be filed along with the SPICe+ form. All you need is the name and residential proof of the designated director. Before January 2018, Form DIR-3 was used to obtain the Director’s Identification Number. But now applicant can obtain DIN for three directors along with SPICe+ form.
  • Company’s Name Approval: Once you have obtained DSC and DIN, now it’s time to decide the name of the company and get it approved by the Ministry of Corporate Affairs. Name of the company should be in the format of “XYZ (OPC) Private Limited.”
  • Re-Check All The Documents: It’s quite obvious no one wants to resubmit their documents, so it’s better to recheck them and make sure all the documents are in the accurate format. Check whether the details of your PAN card matches with the details of your other proof such as address proof. In case of some spelling mistakes, get it corrected before the submission.
  • Submission Of Forms: After uploading the documents, Form 49A and Form 49B would be generated for the company’s PAN and TAN. You can use them to file PAN and TAN of the company which will further help you to open a bank account for the company.
  • Issuance Of Certificate Of Incorporation By The Authorities: All the documents and forms are verified by the authorities. Once the verification is done Registrar of Companies would issue you a certificate of Incorporation that will contain CIN number.One Person Company Registration cannot be done without submitting above mentioned documents.
What is a Partnership Firm
    • A partnership comes into picture when two or more people agree to go into business together and both might be from same family or same association, whether or not they have a written contract.
    • Ideally, it is mandatory to validate the details in a partnership agreement that specifies each partner’s rights, responsibilities, and share of the profits.
    • Partnership firms are registered with the Registrar of Firms
    • Steps to Apply for partnership Firm
    • Fill up basic requirement form
    • We’ll collect all your documents and file them directly with the authority
    • You’ll receive your completed Partnership Company package by mail

Tax Advice: Prepare & file business taxes can be complicated. Our expert CA/CS will help you to prepare and file tax forms for your Partnership correctly with a minimal fee and on time. Learn more about Taxes & Compliances.

Benefits & Liabilities of Partnership Firm
    • Low tax liabilities
    • Easy to control as managed by few promoters
    • Freedom to choose any business name but make sure that the name is not a trademark of any other company or individual.
    • Easy to start with a minimal registration process.
    • Easy to shut down the company with very less compliances.
    • Partnerships are easy to incorporate and flexible to manage. Unlike corporations and LLPs, you won’t have to file formation documents or annual reports with the state.
    • Partners are personally liable for the business, including all debts and liabilities of the other partners.
    • Once partners are engaged in a business, each partner is personally liable for the actions of that business, including the obligations of the other partners. There are no shields against personal liability.
    • The share in a Partnership can be transferred to another partner after obtaining the permission of all the Partners in a Partnership
Documents required for Partnership registration
Documents required for Partnership registration
    • Voter’s ID/Passport/Driver’s License PAN Card
    • Voter’s ID/Passport/Driver’s License
    • Passport-sized photographs
    • Proof of registered office
Is a partnership right for you to start?
    • When you want to start your business involving one of your family members, then partnership might be the right option for you to choose.
    • One or more Partners can be designated to manage the Partnership Firm.
Taxes for Partnership Firm 

A general partnership doesn’t pay any income taxes. Instead, profits and losses flow through to each of the partners, who are responsible to report it on their personal income tax returns.

What is LLP (Limited Liability Partnership Company)?

The Limited Liability Partnership (LLP) is legal entity under which one can enjoy the benefit of limited liabilities and general partnership. The LLPs are governed by the Limited Liability Partnership Act 2008.

It is an upgraded version of general partnership and the partners are knows as Designated Partners. In LLP partners can enjoy the benefit of limited liabilities. The registration of LLP is a very simple process and is proffered most as it has lesser compliance to follow. LLPs are most recommended for professional firms, micro and small businesses that are family-owned or closely-held.

The partners in LLP have limited liability, meaning that personal assets of the partners can’t be used for paying the debts of the company. Designated partners are liable only to the extent of their contribution in the LLP mentioned in the agreement. Even if there are number of partners, each partner is liable for their own decisions not for the other partner’s misconduct.  In this way, all the partners are shielded from the joint liability.

The LLP is executed between the partners and the LLP agreement determines the mutual rights, duties, and responsibilities of the partners. The LLP agreement must be printed on stamp paper and the stamp duty to be paid on the LLP agreement is depends on the state of in which the LLP is incorporated and amount of capital contribution from the partners

Is LLP right for you to start?

If you don’t want to take responsibility or liability for another partner’s misconduct, incompetence or negligence and also want to limit your liabilities for the debt and losses, also want to enjoy tax benefits. Then LLP is the best option to go with.

Funding or Borrowing Capital

It’s easy for LLP to get funding or borrow capital from banks/Financial Institutes in comparison to Sole proprietorship and Partnership type.

Benefits/Characteristics of the LLP Formation
    • Separate legal entity:  The LLP enjoys the status of a separate legal entity like a company where partners are different from the company.
    • Easy to form
    • Liability – the partners have limited liability which means they are not liable to pay the debts of the company from their personal assets. No partner can be held responsible for the conduct of other partner’s misconduct.
    • Easy transfer-ability of ownership: The transfer of ownership is easy, as it is easy to admit or leave a partner.
    • Perpetual succession: According to the provisions of the Act, the LLP will not be winded up in case of death, retirement or insolvency of a partner. The LLP is not affected by the same; it can continue its work.
    • The inclusion of foreigners: According to the Act, foreign nationals including foreign companies can be incorporated to form an LLP in India. In this case, at least one designated person must be resident of India.
    • To begin an LLP, minimum of two members are required. There is no upper limit set for the maximum number of partners.
    • No compulsory audit required: the audit in case of LLP is not mandatory, unless:
      1- If the contribution of the LLP exceeds 25 lakh rupees.
      2- If the turnover of the LLP exceeds 40 lakh rupees annually.
LLP Taxes
    • LLP requires to file the annual return with the Income Tax Department
    • Annual account audit is flexible and not applicable if turnover less than Rs.40 Lakhs per annum.
Documents required for LLP registration
    • PAN Card or Passport (Foreign Nationals & NRIs)
    • Voter’s ID/Passport/Driver’s License
    • Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
    • Passport-sized photograph
    • Specimen signature (blank document with signature [partners only])
    • Any Utility bills
    • Scanned copy of Rent agreement with NOC from owner
How to incorporate LLP Online?

Step 1: Obtain DSC (Digital Signature Certificate)

    • It’s necessary to apply for a Digital signature of the designated partners before starting the LLP Registration process.
    • The DSC is important as all the documents before submission are required to be digitally signed.

Step 2: Apply for DIN (Director Identification Number)

    • The application for DIN is mandatory for every designated partner.
    • The DIN application has to make in Form DIR-3.

Step 3: Name Approval and its Reservation

    • The LLP name approval is an important step to establish a company.
    • RUN (Reserve Unique Name) form is filled for the reservation of the name given by LLP.
    • The name provided must be as per the rule 8 of Company Registration Act, 2013

Step 4: Incorporation of LLP

    • For the Incorporation of LLP the incorporation form is to be filled with Registrar of companies of the respective state in which the registered office of the LLP is located.

Step 5: Submission of Limited Liability Partnership Agreement/ LLP Agreement

    • LLP agreement involves the rights and duties amongst the partners and also among the LLP and its partners.
    • LLP agreement must be submitted in form 3 within 30 days of the date of incorporation.
Limitations of LLP
  • LLP cannot be formed by a single person.  If any NRI/ Foreign national wants to form an LLP in India, then at least one partner should be a resident of India.
  • Not preferred by Venture Capitalist for funding: VCs would be unwilling to invest in an LLP structure. As per the LLP agreement all ‘shareholders’ in an LLP must be partners, with certain responsibilities toward the entity. Investors usually want to invest only so they prefer private limited company.
  • Rights of partners: An LLP can be structured in such a way that one partner has more rights than another. There is no one vote per share system.  This can lead to feel compromised if higher shareholders choose to move the business in a direction that affects their interests.
  • High penalties: compliances in A LLP are minimal, but one does not complete them, it could end up paying penalties more than a private limited company.
  • Permission of Foreign Direct Investment (FDI) in LLP – As per FDI Policy, FDI in LLP is allowed only through Government route, FDI in LLP under automatic route is not permissible.
Business Entities Comparison Guide
    • A maximum of 1 member is needed;
    • The entity is not considered as a separate legal entity;
    • The liability of members is unlimited;
    • The Registration of entity is not compulsory;
    • The transferability option is only as an individual;
    • The profit and losses of the business should be reported in the personal income tax return of the sole proprietor. The business itself is not taxed.
    • The Income Tax Return is filed with the Registrar of Companies.
Partnership Firm
    • A minimum of 2 and maximum of 20 members are needed;
    • The entity is not considered as a separate legal entity;
    • The liability of members is unlimited;
    • The Registration of entity is optional. The entity can be registered under the Partnership Act, 1932
    • The transferability option is available only up to 30% of the Company profit only.
    • The Partnership Firm is liable to pay income tax at the rate of 30% of Company profit.
    • The Income Tax Return is filed with the Registrar of Companies.
    • A minimum of 2 members are needed. There is no limit on the maximum number of members;
    • The entity is considered as a separate legal entity;
    • The liability of members is limited;
    • The Registration of entity is done under MCA;
    • The transferability option of LLP is 30% of Profit Plus CESS and Surcharges applicable;
    • The LLP is liable to pay income tax at the rate of 30% of Profit Plus CESS and Surcharges applicable;
    • The Income Tax Return is filed with the Registrar of Companies.
Private Company
    • A minimum of 2 and maximum of 200 members are needed;
    • The entity is considered as a separate legal entity;
    • The liability of members is limited to the extent of share capital;
    • The Registration of entity is done under MCA.
    • The transferability option of Private Company LLP is 30% of Profit Plus CESS and Surcharges applicable;
    • A Private Company is liable to pay income tax at the rate of 30% of Profit Plus CESS and Surcharges applicable.
    • The Income Tax Return is filed with the Registrar of Companies.
    • Only 1 member is needed;
    • The entity is considered as a separate legal entity;
    • The liability of members is limited to the extent of share capital;
    • The Registration of entity is under MCA and Companies Act, 2013;
    • The transfer of OPC is allowed to only one person;
    • An OPC is liable to pay income tax at the rate of 30% of Profit Plus CESS and Surcharges applicable.
    • The Income Tax Return is filed with the Registrar of Companies.