Here is a brief comparison of types of entities namely Proprietorship vs Partnership vs LLP vs Private Limited Company.
Proprietorship is not recognised as a separate legal entity and the promoter is personally liable.
Proprietor can choose the name of choice. No approval is necessary.
No formal registration for Proprietorship. However, respective liscense is required based on the nature of business.
Proprietor is responsible for all the liabilities of the Proprietorship.
Can have only one person as member.
Taxed based on the total income of the Proprietor. Know more here
Income Tax Return must be filed based on the income of the Proprietorship.
Proprietorship existence is dependent on the Proprietor.
Legal Munshi offers Proprietorship Registration starting at Rs. 2,499
Partnership is not recognised as a separate legal entity and the partners are personally liable.
Partners can choose the name of choice. No approval is necessary.
Registration of Partnership is optional. Partnership is registered under the Partnership Act, 1932. For registration click here
Partners are responsible for all the liabilities of the Partnership.
Partnership should have a minimum of two people to start business and maximum of 20 partners.
Taxed at 30% of profit plus surcharge and cess as applicable. Know more here
Income tax return of a partnership firm is filed in Form ITR-5. Click here to file partnership return.
Can have only one person as member.
Existence of a Partnership business is dependent on the Partners and could be dissolve due to death of a Partner.
Legal Munshi offers Partnership Firm Registration starting at Rs. 5,999
LLP is a separate legal entity registered under the LLP Act, 2008 and partners are not personally liable.
Promoters can choose the name of choice which must be approved by the Registrar of Company which will be extended by "LLP" at the end.
LLP will be registered with the Ministry of Corporate Affairs under the Limited Liability Partnership Act, 2008. For registration click here
Partners have limited liability and is liable only to the extent of their contribution to the LLP.
LLP should have a minimum of two people to start business and can have unlimited partners.
Taxed at 30% of profit plus surcharge and cess as applicable. Know more here
LLP must file Annual Statement of Accounts & Solvency and Annual Return with the Registrar each year.Income tax return of a LLP firm is filed in Form ITR-5. Click here for LLP annual complainces.
Can have only one person as member.
Existence of a LLP is not dependent on the Partners and could be dissolved only voluntarily or by an Order of the Company Law Board.
Legal Munshi offers LLP Registration starting at Rs. 7,999
Private Limited Company is a separate legal entity registered under the Companies Act, 2013. The Directors and Shareholders and not liable.
Promoters can choose the name of choice which must be approved by the Registrar of Company which will be extended by "Private Limited" at the end.
Private Limited Company will be registered with the Ministry of Corporate Affairs under the Companies Act, 2013. For registration click here
Shareholders have limited liability and is liable only to the extent of their share capital.
Pvt. Ltd. should have a minimum of two people to start business and can have maximum of 200 shareholders or members.
Taxed at 30% of profit plus surcharge and cess as applicable. Know more here
Pvt. Ltd. must file Annual Statement of Accounts & Solvency and Annual Return with the Registrar each year.Income tax return of a Pvt. Ltd. firm is filed in Form ITR-5. Click here for Pvt. Ltd. annual complainces.
Can have only one person as member.
Existence of a Pvt. Ltd. is not dependent on the Directors or Shareholders and could be dissolved only voluntarily or by Regulatory Authorities.
Legal Munshi offers Private Limited Company Registration starting at Rs. 6,999