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Not sure of the Right Entity?

This article curated by our business experts, would help you to choose the correct Business Entity to start your Dream Business 

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What is Sole Proprietorship?

A sole proprietorship is a non-registered, unincorporated business run solely by one individual proprietor with no distinction between the business and the owner. The owner of a sole proprietorship is entitled to all profits but is also responsible for the business’s debts, losses, and liabilities.

What is Partnership Firm?

A Partnership Firm is form by two or more people where a formal agreement is made who agree to be the co-owners, distribute responsibilities for running an organization and share the income or losses that the business generates. Firm registration is not mandatory.

What is Limited Liability Partnership?

Limited Liability Partnership (LLP) is a body corporate, formed and incorporated by two or more designated partners and partners under the Companies Act, 2013. It is a separate legal entity and the liability of the designated partners/partners are limited.

What is One Person Company?

One Person Company (OPC) is a body corporate, formed and incorporated by a single person under the Companies Act, 2013. It is a type of Sole proprietorship with benefits of Private company and eliminate the disadvantage of Sole proprietorship.

What is Private Limited Company?

Private Limited Company means a company whose shares are not offered to the public, also any limited company whose shares were originally offered to the public and are no longer available to the general public, or that were removed from trading on a regulated market shall also be considered a private company.

Choose any 3 to Compare Business

Sole Proprietor
Partnership Firm
Limited Liability Partnership
One Person Company
Private Limited Company
Factors of Comparison Sole Proprietor Partnership Firm Limited Liability Partnership One Person Company Private Limited Company
Capital Minimum: No Requirement Maximum : No Limit Minimum: INR 1/- Maximum : No Limit Minimum - INR 1/- Maximum - No Limit Minimum - INR 1/- Maximum - No Limit Minimum - INR 1/- Maximum - No Limit
Director Not Applicable Not Applicable Not Applicable Minimum 1 Minimum 2
Shareholder Not Applicable Not Applicable Not Applicable Only 1 Minimum 2 and Maximum 200
Designated Partner/Partner Not Applicable Minimum 2 Minimum 2 Not Applicable Not Applicable
Taxation As per Tax Slabs 30% + Cess 30% + Cess 25% + Cess 25% + Cess
Statutory Audit Compulsory above Turnover 2 Crore Above Turnover 5 Cr. If Contribution exceed INR 25 Lacs; If Turnover exceed INR 40 Lacs Compulsory Compulsory
Investors Preference Low Low Medium Not Possible for Fundraising High
Compliance Cost Low Low Medium Low High
Regulator Not Applicable Register of Firms Registrar of Companies Registrar of Companies Registrar of Companies
Time take for Registration 3-4 Working Days 3-4 Working Days 48 Working Hours 48 Working Hours 48 Working Hours
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