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Simple & Quick Comparison of different Business Registrations such as Private Limited, OPC, MSME, Shops, Proprietor, Small Business in India, and their obligations, requirements, costs involved. Understand to get a great head start in running your own business.
| Particulars | Private Limited | Limited Liability Partnership | One Person Company | Partnership | Proprietorship | Public Limited |
|---|---|---|---|---|---|---|
| Popularity | ★★★★★ | ★★★★ | ★★★★ | ★★★ | ★★★★ | ★★★ |
| Annual Compliance Cost | ||||||
| Registration | Registration with ROC under 2013 Act | Registration with ROC under 2013 Act | Registration with ROC under 2013 Act | No formal Registration necessary | No formal registration necessary | Registration with ROC under 2013 Act |
| Name Approval | Need to be approved with MCA | Need to be approved with MCA | Need to be Approved with MCA | NO name approval required | NO Name approval required | Need to be approved with MCA |
| Legal Status | Separate legal entity from Owners, Capital is a Personal Liability | Separate legal entity from Owners, Capital is a Personal Liability | Separate legal entity from Owners | NO Separate Legal Entity for Owner | NO Separate Legal Entity for Owner | Separate legal entity from Owners, Capital is a Personal liability |
| Borrowing | Banks / NBFCs / PEs / VCs / Founders | Banks / NBFCs / PEs / VCs / Founders | Banks / NBFCs / personal Sources | Banks / NBFCs / personal Sources | Personal Sources and Banks | Banks / NBFCs / FIIs / FIPs |
| Startup Accreditation? | ||||||
| Liability Limitation | * | |||||
| Owners Remuneration | Allowed as per Agreement (Can't exceed 11% of Profits) | Partner's remuneration allowed. Certain restrictions | Partner's remuneration allowed Certain restrictions | Allowed as per Agreement | Owner's Salary not allowed | Allowed as per agreement |
| Min v/s Max Revenue / Year | No Limit | No Limit | No Limit (removed 50L paidup capital and 2 Cr turnover limitations in 2021) | No Limit | No Limit | No Limit |
| Min v/s Max No of Shareholders/Members | 2-200 | 2-Unlimited | 1:1 | 2:20 | 1:1 | 7-Unlimited |
| Min v/s Max No of Directors | 1-15 | 2-15 | 2-15 | 2-20 | 1-1 | 3-Unlimited |
| Foreign Member | Allowed. But Govt. approval is needed in some cases | Need's Govt. Approval | Not Allowed | Not Allowed | Not Allowed | Not allowed in Gambling, Betting Chit Funds and sectors not opened for Pvt Ltd |
| Transferability | Can be transferred easily | Can be transferred | Can be transferred | Not Allowed | Not Allowed | Can be transferred |
| Income Tax (Includes surcharge & Education cess) | 29.87 - 34.61% | 29.87 - 34.61% | 29.87 - 34.61% | 29.87 - 34.61% | 0 - 34.61% | 29.87 - 34.61% |
| GST Applicability & Rates | Needed based on turnover Rates from 0 to 28% | Needed based on turnover Rates from 0 to 28% | Needed based on turnover Rates from 0 to 28% | Needed based on turnover Rates from 0 to 28% | Needed based on turnover Rates from 0 to 28% | Mandatory Rates from 0 to 28% |
| Board Meetings | To be held periodically | Not needed | Not needed | Not needed | Not needed | To be held periodically |
| Registration Cost from | Rs. 7,798/- | Rs. 7,798/- | Rs. 7,798/- | Rs. 6,929/- | Rs. 2,443/- | Rs. 34,000/- |
| Plan & Pricing | Plan Info | Plan Info | Plan Info | Plan Info | Plan Info | Contact Now |
| Explained | More Info | More Info | More Info | More Info | More Info | |
| Particulars | Private Limited | Limited Liability Partnership | One Person Company | Partnership | Proprietorship | Public Limited |
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Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.