Business Registration Type Assessment Calculator

You may run your business on your name using your PAN number. No formal registration necessary or Name approval required or a separate Legal Entity for the Owner is required. But one may need to take GST, Shop License and other applicable local registrations.

Just a partnership agreement is enough but its better to have the deed registered with a local state level registrar. no formal name approval needed. registered firm may have a separate PAN and maintain the books and financial records accordingly.

Formal registration is mandatory with Ministry of Corporate Affairs, Registrar of Companies under 2013 act. Will be operated under a separate legal entity. But maximum turnover could be Rs. 50L.

Limited Liability Partnership Firm is a type of a Company registered under Ministry of Corporate Affairs, Registrar of Companies under 2013 act. Greater emphasis on limitation of liability and at the same time operates similar to a Firm. Less Compliance, penalties are limited compared to Private limited company. Can be registered as a Startup with DIPP. One of the best option for new businesses.

Private Limited Company (aka PL, PLC) is a Company with fairly no limitations on how big a company can be under this type of business registration. Compliance costs during the year and changes to the constitution of the business is very high. most small businesses whose yearly turnover under Rs. 2 Crores, need to re-think whether its really needed to have this type of registration. Highest Compliance to follow, most VCs, Banks prefer Pvt Ltd Company registration for loan approval.