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basis of difference Proprietorship firm Partnership firm Llp Opc Private Public
recommended for home businesses small manufactures and traders professional service firms sole promoters start-ups and growing companies grown up company
Registration not mandatory TO BE REGISTERED UNDER THE INDIAN PARTNERSHIP ACT,1932 (OPTIONAL)(ADVISABLE TO GET IT REGISTERED) TO BE REGISTERED UNDER THE LIMITED LIABILITY PARTNERSHIP ACT, 2008 TO BE REGISTERED UNDER THE COMPANIES ACT, 2013 TO BE REGISTERED UNDER THE COMPANIES ACT, 2013 TO BE REGISTERED UNDER THE COMPANIES ACT, 2013
legal status not legal entity not separate legal entity separate legal entity separate legal entity separate legal entity separate legal entity
personal liability unlimited liability of proprietor unlimited liability of proprietor partner LIMITED LIABILITY OF PARTNERS TO THE EXTENT OF THEIR CONTRIBUTION LIMITED LIABILITY OF DIRECTOR TO THE EXTENT OF THEIR CONTRIBUTION TOWARDS SHARE CAPITAL LIMITED LIABILITY OF DIRECTOR TO THE EXTENT OF THEIR CONTRIBUTION TOWARDS SHARE CAPITAL LIMITED LIABILITY OF DIRECTOR TO THE EXTENT OF THEIR CONTRIBUTION TOWARDS SHARE CAPITAL
minimum no. of members 1 2 2 1 2 7
maximum no. of members 1 baning sector-10 unlimited 2 200 unlimited
MINIMUM NO. OF DIRECTOR/ DESIGNATED PARTNER nil nil 2 DESIGNATED PARTNERS/PARTNERS 1 director 2 director 3 director
MAXIMUM NO. OF DIRECTOR/ DESIGNATED PARTNER not aPplicable not aaplicable not aaplicable 15 director 15 director 15 director
annual compliance ONLY FILING OF INCOME TAX RETURNS ONLY FILING OF INCOME TAX RETURNS FILING OF INCOME TAX RETURNS + ROC FILING FILING OF INCOME TAX RETURNS + ROC FILING FILING OF INCOME TAX RETURNS + ROC FILING FILING OF INCOME TAX RETURNS + ROC FILING
taxability slab rate (0-10-20-30%) flate rate 30% flate rate 30% flate rate 25% flate rate 25% flate rate 25%
ownwer’s remuneration not allowed ALLOWED SUBJECT TO CERTAIN RESTRICTION ALLOWED SUBJECT TO CERTAIN RESTRICTION DIRECTOR’S REMUNERATION ALLOWED SUBJECT TO CERTAIN RESTRICTION DIRECTOR’S REMUNERATION ALLOWED SUBJECT TO CERTAIN RESTRICTION DIRECTOR’S REMUNERATION ALLOWED SUBJECT TO CERTAIN RESTRICTION
ownwership transferability not transferable not transferable transferable transferable transferable transferable
refgistration cost 1 time 1.5 time 2 time 2.5 time 3 time 3.2 time
annual compliance cost 1 time 2 time 2 time 3 time 4 time 4 time
ELIGIBILITY FOR GOVT. STARTUP SCHEME NOT ELIGIBILITY only registered partnership firm eligable eligable eligable eligable