|
Features |
Proprietorship Business |
General Partnership |
LLP (Limited Liability Partnership) |
One Person company |
Pvt. Ltd. Company |
|
Starting up |
No registration required |
Registration is optional |
Mandatory registration |
Mandatory Registration |
Mandatory Registration |
|
Business Name |
No approval required. Should not infringe trademark or copyright |
No approval required. Should not infringed trademark or copyright |
Approval required prior to incorporation |
Approval required prior to incorporation |
Approval required prior to incorporation |
|
Legal Status |
Not a legal entity |
Not a separate legal entity |
Separate legal entity |
Separate legal entity |
Separate legal entity |
|
Foreign Nationals |
Not allowed |
Not allowed |
Allowed. Min 1 resident Designated partner needed |
Only Indian Resident,No foreign Nationals Allowed |
Allowed. Min 1 resident Director needed |
|
Persons |
Min: 1, Max : 1 |
Min: 2, Max: 20 |
Min : 2, Max: No Limit |
Min:1 , Max:1 |
Min: 2, Max: 50 |
|
Charter Document |
None |
Partnership Deed |
LLP Agreement |
Memorandum of Association (MoA) and Articles of Association (AoA) |
Memorandum of Association (MoA) and Articles of Association (AoA) |
|
Business Licenses |
Applicable as per business requirements |
Applicable as per business requirements |
Applicable as per business requirements |
Applicable as per business requirements |
Applicable as per business requirements |
|
Validity |
Till death of Owner |
Dissolved on death of a partner. Can be dissolved at the will of all partners or even one partner can give notice for dissolving. |
Perpetual succession |
Perpetual succession |
Perpetual succession |
|
Registering Authority |
None |
Registrar of Firms |
Registrar of Limited Liability Partnerships, MCA |
Registrar of Companies, MCA |
Registrar of Companies, MCA |
|
Governing Act |
None |
The Indian Partnership Act, 1932 |
The LLP Act, 2008 |
The Companies Act,2013 |
The Companies Act, 2013 |
|
Compliance Requirements |
Low |
Low |
Moderate |
High |
High |
|
Income Tax Rates |
Individual rates |
30% |
30% |
30% |
30% |
|
Remuneration to Stakeholders |
Not applicable |
Exempt from tax |
Exempt from tax |
Treated as normal salary |
Treated as normal salary |
|
Winding up/ Dissolution |
Easy |
Easy |
Prescribed process to be followed |
Prescribed process to be followed |
Prescribed process to be followed |
|
Liability |
Unlimited. Personal property is also covered |
Unlimited. Personal property is also covered |
Limited upto contribution in LLP (except in case of Fraud) |
Limited to the unpaid subscription money |
Limited upto extent of shares hold (except in case of Fraud) |
|
Capacity to Sue |
Individual level |
As a Firm (in case of registered firms). Individually/ Collectively (in case of not registered firms) |
As a Firm |
As a Company |
As a Company |
|
Market Reputation |
Low |
Low |
Moderate |
High |
High
|
