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Select your business -
- Sole Proprietorship
- Partnership Firm
- Private Limited Company
- Public Limited Company
- One Person Company
- Limited Liability Partnerships
Proprietorship
Partnership Firm
Private Limited
Public Limited
One Person
Limited Liability
Minimum Number of Directors/Designated Partners
One
Two Partners
Two Directors
Three Directors
One Director
Two Designated Partners
Decision Makers
Proprietor
Partnership firm are managed by the Partners as per the partnership agreement.
Members of Board are elected by shareholders. Most of the decision are taken by the Directors, In some cases shareholders’ approval are required
Members of Board are elected by shareholders. Most of the decision are taken by the Directors, In some cases shareholders’ approval are required
Members of Board are elected by shareholders. Most of the decision are taken by the Directors, In some cases shareholder approval are required
Decision are taken by Designated partners in an Limited Liability Partnerships as per LLP Agreement
Transfer of Ownership
Ownership Cannot be transferred
Partners are the owners of the firm. A partner can resign and take the share in the firm as per partnership agreement. No approval required from any government authority.
A shareholder can transfer his ownership right by transferring the shares to any person subject to conditions in Articles of the company, by executing a share transfer deed.
A shareholder can transfer his ownership right by transferring the shares to any person freely, by executing a share transfer deed.
A shareholder can transfer his ownership right by transferring the shares to any person subject to conditions in Articles of the company, by executing a share transfer deed.
A partner may cease to be a partner of a LLP in accordance with an agreement with the other partners.
Limited Liability
Unlimited Liability
Unlimited Liability
If Shareholders/Members holds fully-paid shares of the company, they have no further liability to pay any amount even if the company is declared insolvent.
The liability of members extends only to the contribution of the nominal value of the shares held and not paid by them.
Directors and shareholder are not responsible to pay the debts of the company from their personal assets even if the company is declared insolvent
In case of Insolvency, the court cannot sell personal properties of the partners to repay the liabilities of the LLP. Partners will lose only the Capital Contributed by them
Name Protection
Name of the proprietorship concern is not protected
Name of the Partnership Firm concern is not protected
The Registrar of companies does not allow another name which are identical, similar or nearly resembles with the existing name of a private limited company
Identical, similar or nearly resembles are not allowed by registrar of companies while applying for reservation of name. Once your company is registered, any other person cannot register another company, with the similar or resembling name
After registering “One Person Company” with the registrar of companies, the name of the company gets protected. Registrar of companies will not accept registration of another company, which is similar, identical or resembling with an existing name
The Registrar does not allow name which are identical, similar or nearly resembles with the existing name of an LLP. Once your LLP is registered, any other person cannot register another LLP with the same name
Never ending duration of Business
Proprietorship concerns is closed if the proprietor dies or is declared as insolvent
N/A
Directors or shareholders may come and go in the company, but a company never dies with the outgoing of shareholders or Directors. A company can, only be closed with the consent of shareholders or by the process given in Law
A company incorporated under Companies act never dies. A company can, only be closed with the consent of shareholders or by the process given in Law
Ever if the Shareholder or Directors go away from the company, “One person company” continues its existence
Any Change in the partners of LLP shall not affect the existence of the LLP.
Minimum Capital
Capital can be Invested as per the will of the proprietor.
Any amount of Capital contribution can be made by partners as per the Partnership deed.
Requirement of minimum Capital is not mandatory. Any amount of share capital can be Invested as per the will of the Promoter/Shareholders.
Requirement of minimum Capital is not mandatory. Any amount of share capital can be Invested as per the will of the Promoter/Shareholders.
Requirement of minimum Capital is not mandatory. Any amount of share capital can be Invested as per the will of the Promoter/Shareholders.
Any amount of Capital contribution can be made by partners as per the LLP Agreement
Acceptance of capital from Public
Can take unsecured loan
Can take unsecured loan
Cannot Invite or make offer to Public for making Investment in the Company.
Public Limited Company can Invite or make offer to Public for making Investment in the Company.
Cannot Invite or make offer to Public for making Investment in the Company.
Can take unsecured loan.
Listing on stock Exchange
Cannot be Listed on Stock Exchange.
Cannot be Listed on Stock Exchange.
Shares cannot be listed or traded on Stock Exchange.
Shares can be listed and traded on Stock Exchange.
Shares cannot be listed or traded on Stock Exchange
Shares cannot be listed or traded on Stock Exchange
Foreign Direct Investment
Non-Resident Indian (NRI) or a Person of Indian Origin(PIO) can invest in Proprietary Concern by way of capital contribution provided that the amount invested in Proprietary Concern the shall not be eligible for repatriation outside India
Non-Resident Indian (NRI) or a Person of Indian Origin(PIO) can invest in Partnership firm by way of capital contribution, provided that the amount invested in Partnership firm the shall not be eligible for repatriation outside India.
Foreign Direct Investment (FDI) can be invested in Indian Private Companies, through two routes i.e, Automatic Route and Government Route subject to prohibition in some sector of business.
Foreign Direct Investment (FDI) can be invested in Indian Public Companies, through two routes i.e, Automatic Route and Government Route subject to prohibition in some sector of business.
NRIs, PIO, non-resident is not allowed to invest in one person company through FDI
LLP shall require prior approval of Government/Foreign Investment Promotion Board to accept Foreign Direct Investment (FDI).
Rate of Income Tax
Individual taxation rate applies
Add: Surcharge @12% if Total Income exceeds Rs. 1 Cr.
Add: Edu.cessand Shec @ 3%
Add: Surcharge @12% if Total Income exceeds Rs. 1 Cr.
Add: Edu.cessand Shec @ 3%
Income Tax is chargeable @ 30% on net profit of the firm.
Add: Surcharge @12% if Total Income exceeds Rs. 1 Cr.
Add: Surcharge @12% if Total Income exceeds Rs. 1 Cr.
Corporate tax is applicable to PrivateLimited company @ 30% on net profit of the company.
Add: Surcharge @7% if Total Income exceeds Rs. 1 Cr & 12% if Total Income exceeds Rs. 10 Cr.
Add: Edu.cess and Shec @ 3%
Add: Surcharge @7% if Total Income exceeds Rs. 1 Cr & 12% if Total Income exceeds Rs. 10 Cr.
Add: Edu.cess and Shec @ 3%
Corporate tax is applicable to Public limited company @ 30% on net profit of the company.
Add: Surcharge @7% if Total Income exceeds Rs. 1 Cr & 12% if Total Income exceeds Rs. 10 Cr.
Add: Edu.cess and Shec @ 3%
Add: Surcharge @7% if Total Income exceeds Rs. 1 Cr & 12% if Total Income exceeds Rs. 10 Cr.
Add: Edu.cess and Shec @ 3%
Corporate tax is applicable to One Person company @ 30% on net profit of the company.
Add: Surcharge @7% if Total Income exceeds Rs. 1 Cr & 12% if Total Income exceeds Rs. 10 Cr.
Add: Edu.cess and Shec @ 3%
Add: Surcharge @7% if Total Income exceeds Rs. 1 Cr & 12% if Total Income exceeds Rs. 10 Cr.
Add: Edu.cess and Shec @ 3%
Income Tax is chargeable @ 30% on net profit of the LLP.
Add: Surcharge @12% if Total Income exceeds Rs. 1 Cr.
Add: Edu.cess and Shec @ 3%
Add: Surcharge @12% if Total Income exceeds Rs. 1 Cr.
Add: Edu.cess and Shec @ 3%
Dividend Distribution Tax
Dividend Distribution tax isnot applicable toa proprietorship concern.
Dividend Distribution tax is not applicable to a Partnership Firm.
Profit if distributed as Dividend, it will attract Dividend Distribution Tax (DDT) @16.995% on Grossed up Value.
Effective Tax Rate: 20.47%
Effective Tax Rate: 20.47%
Profit if distributed as Dividend, it will attract Dividend Distribution Tax (DDT) @16.995% on Grossed up Value.
Effective Tax Rate: 20.47%
Effective Tax Rate: 20.47%
Profit if distributed as Dividend, it will attract Dividend Distribution Tax (DDT) @16.995% on Grossed up Value.
Effective Tax Rate: 20.47%
Effective Tax Rate: 20.47%
Dividend Distribution tax is not applicable to a Limited Liability Partnership
Income Tax Filings
If Taxable Income exceeds themaximum amount which is not chargeable to tax before deduction under head Chapter VI-A of Income Tax Act
Required to file Income Tax return every year. In case of no business, a 'NIL' return is required to be filed.
Required to file Income Tax return every year. In case of no business, a 'NIL' return is required to be filed.
Required to file Income Tax return every year. In case of no business, a 'NIL' return is required to be filed.
Required to file Income Tax return every year. In case of no business, a 'NIL' return is required to be filed
Required to file Income Tax return every year. In case of no business, a 'NIL' return is required to be filed.
Minimum Alternate Tax(MAT)/Alternate Minimum Tax(AMT)
AMT is applicable if Individual claim deduction under any section (other than sec tion80P) included in chapter VI-A under heading “C”. If Adjusted total income exceed Rs.25 Lac.
Add: Surcharge @12% if Total Adjusted Total Income exceeds Rs. 1 Cr.
Add: Edu.cess and Shec @ 3%
Add: Surcharge @12% if Total Adjusted Total Income exceeds Rs. 1 Cr.
Add: Edu.cess and Shec @ 3%
AMT is applicable if firm claim deduction under any section (other than section 80P) included in chapter VI-A under heading “C”. Tax Rate 18.5%
Add: Surcharge @12% if Total Income exceeds Rs. 1 Cr.
Add: Edu.cess and Shec @ 3%
Add: Surcharge @12% if Total Income exceeds Rs. 1 Cr.
Add: Edu.cess and Shec @ 3%
MAT is applicable if Income tax profit is less than 18.5% of book Profit.
Add: Surcharge as applicable to Normal Income Tax.
Add: Surcharge @7% if Total Income exceeds Rs. 1 Cr & 12% if Total Income exceeds Rs. 10 Cr.
Add: Edu.cess and Shec @ 3%
Add: Surcharge as applicable to Normal Income Tax.
Add: Surcharge @7% if Total Income exceeds Rs. 1 Cr & 12% if Total Income exceeds Rs. 10 Cr.
Add: Edu.cess and Shec @ 3%
MAT is applicable if Income tax profit is less than 18.5% of book Profit.
Tax rate :18.5%
Add: Surcharge as applicable to Normal Income Tax.
Add: Surcharge @7% if Total Income exceeds Rs. 1 Cr & 12% if Total Income exceeds Rs. 10 Cr.
Add: Edu.cess and Shec @ 3%
Tax rate :18.5%
Add: Surcharge as applicable to Normal Income Tax.
Add: Surcharge @7% if Total Income exceeds Rs. 1 Cr & 12% if Total Income exceeds Rs. 10 Cr.
Add: Edu.cess and Shec @ 3%
MAT is applicable if Income tax profit is less than 18.5% of book Profit.
Tax rate :18.5%
Add: Surcharge as applicable to Normal Income Tax.
Add: Surcharge @7% if Total Income exceeds Rs. 1 Cr & 12% if Total Income exceeds Rs. 10 Cr.
Add: Edu.cess and Shec @ 3%
Tax rate :18.5%
Add: Surcharge as applicable to Normal Income Tax.
Add: Surcharge @7% if Total Income exceeds Rs. 1 Cr & 12% if Total Income exceeds Rs. 10 Cr.
Add: Edu.cess and Shec @ 3%
AMT is applicable if LLP claim deduction under any section (other than section80P) included in chapter VI-A under heading “C”. Tax Rate 18.5%
Add: Surcharge @12% if Total Income exceeds Rs. 1 Cr.
Add: Edu.cess and Shec @ 3%
Add: Surcharge @12% if Total Income exceeds Rs. 1 Cr.
Add: Edu.cess and Shec @ 3%
Books of Account Audit Requirements
Not Applicable
Not Applicable
Books of Accounts to be Audited by a Chartered Accountant whether the company does any business or not in any Financial year
Books of Accounts to be Audited by a Chartered Accountant whether the company does any business or not in any Financial year
Books of Accounts to be Audited by a Chartered Accountant whether the company does any business or not in any Financial year
Books of Accounts to be Audited by a Chartered Accountant only if the turnover exceeds Rs. 40 Lakhs or contribution exceeds Rs.25 Lakhs.
Tax Audit Requirements
Accounts to be Audited by a Chartered Accountant only if the business turnover exceeds Rs. 1 Crore in F/Y 2015-16 and 2 Crore in F/Y 2016-17.
Accounts to be Audited by a Chartered Accountant only if the turnover exceeds Rs.1 Crore in F/Y 2015-16 and 2 Crore in F/Y 2016-17
Accounts to be Audited by a Chartered Accountant only if the turnover exceeds Rs.1 Crore in F/Y 2015-16 and 2 Crore in F/Y 2016-17
Accounts to be Audited by a Chartered Accountant only if the turnover exceeds Rs.1 Crore in F/Y 2015-16 and 2 Crore in F/Y 2016-17
Accounts to be Audited by a Chartered Accountant only if the turnover exceeds Rs.1 Crore in F/Y 2015-16 and 2 Crore in F/Y 2016-17
Accounts to be Audited by a Chartered Accountant only if the turnover exceeds Rs.1 Crore in F/Y 2015-16 and 2 Crore in F/Y 2016-17
Dissolution/Termination
Proprietorship firm can be closed as per the will of the proprietor.
Partnership firm can be closed as per the will of the partners and following the procedures laid down in partnership deed.
Private Limited Company can be dissolved/wind upwith the consent of shareholdersand with the approval of High Court.
Public Limited Company can be dissolved/wind up with the consent of shareholders and with the approval of High Court.
One Person Company can be dissolved/wind up with the consent of shareholders and with the approval of High Court.
LLP may be wind up either Voluntary or by the Tribunal and as per the procedures laid down in the LLP Act, 2008.