Home > Income Tax > Help Center > Compare Business TypesLast Updated: Apr 03rd 2022
Compare Business Registrations in India
Got an Idea? Want to start a Business ?
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. 5,999/- | Rs. 5,999/- | Rs. 5,999/- | Rs. 5,999/- | Rs. 2,499/- | 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 |
