Free Tool · India 2025 · 5 Business Structures Compared
Company Type Comparison Wizard
Answer 5 quick questions and get a personalised recommendation. Then compare all five Indian business structures side-by-side on tax rates, liability, compliance cost, fundraising ability, and FDI rules — with citations to the governing Act for every data point.
Stage 1 — Quick Questionnaire (5 questions)
Question 1 of 5
How many founders / owners will the business have?
Question 2 of 5
Do you want limited liability protection (personal assets shielded from business debts)?
Question 3 of 5
Do you plan to raise equity funding from investors or VCs?
Question 4 of 5
Will you need foreign investment or do you have NRI co-founders?
Question 5 of 5
What is your likely first-year revenue?
Answer all 5 questions above to get a personalised structure recommendation.
Stage 2 — Full Comparison
Click any row to see a detailed note. Green = favourable, Red = unfavourable.
| Parameter | Proprietorship Register → | Partnership Register → | LLP Register → | OPC Register → | Pvt Ltd Register → |
|---|---|---|---|---|---|
| Governing Act | No specific Act (GST/MSME registration) | Indian Partnership Act, 1932 | LLP Act, 2008 | Companies Act, 2013 | Companies Act, 2013 |
| Minimum members | 1 | 2 | 2 | 1 | 2 |
| Maximum members | 1 | 50 | No limit | 1 + nominee | 200 |
| Registration body | No formal registration needed | Registrar of Firms | MCA21 | MCA21 | MCA21 |
| Typical registration time | 1–2 days | 3–5 days | 10–15 days | 10–15 days | 10–15 days |
| Typical registration cost | ₹500 – ₹2,000 | ₹2,000 – ₹5,000 | ₹5,000 – ₹15,000 | ₹7,000 – ₹12,000 | ₹7,000 – ₹15,000 |
| Personal liability▼ | Unlimited | Unlimited (joint & several) | Limited to contribution | Limited | Limited |
| Corporate tax rate▼ | Personal slab (0–30%) | 30% + 4% cess | 30% + 4% cess | 25% + surcharge + 4% cess | 25% (turnover ≤₹400Cr) + surcharge + 4% cess |
| Statutory audit▼ | Section 44AB if turnover >₹1Cr | Section 44AB if turnover >₹1Cr | If turnover >₹40L or contribution >₹25L | Mandatory every year | Mandatory every year |
| Annual compliance cost▼ | Low — ITR only | Low — ITR + partnership deed | Medium — MCA filings + ITR | Medium — MCA + ITR + audit | Medium-High — MCA + ITR + audit + board meetings |
| Equity fundraising▼ | Not possible | Not possible | Possible (no shares, complex structure) | Not possible (no equity) | Full — shares, convertibles, VCs |
| Foreign investment (FDI)▼ | Not allowed | Not allowed (RBI restriction) | Allowed with conditions (FEMA / RBI approval route) | Not allowed | Allowed — automatic / approval route |
| Suitable for | Freelancers, small traders | Professional firms, small businesses | CA/CS/law firms, professionals, service businesses | Solo founders wanting corporate structure | Startups, businesses planning growth or funding |
Proprietorship
Personal liability
Unlimited
Corporate tax rate
Personal slab (0–30%)
Equity fundraising
Not possible
Foreign investment (FDI)
Not allowed
Suitable for
Freelancers, small traders
Partnership
Personal liability
Unlimited (joint & several)
Corporate tax rate
30% + 4% cess
Equity fundraising
Not possible
Foreign investment (FDI)
Not allowed (RBI restriction)
Suitable for
Professional firms, small businesses
LLP
Personal liability
Limited to contribution
Corporate tax rate
30% + 4% cess
Equity fundraising
Possible (no shares, complex structure)
Foreign investment (FDI)
Allowed with conditions (FEMA / RBI approval route)
Suitable for
CA/CS/law firms, professionals, service businesses
OPC
Personal liability
Limited
Corporate tax rate
25% + surcharge + 4% cess
Equity fundraising
Not possible (no equity)
Foreign investment (FDI)
Not allowed
Suitable for
Solo founders wanting corporate structure
Pvt Ltd
Personal liability
Limited
Corporate tax rate
25% (turnover ≤₹400Cr) + surcharge + 4% cess
Equity fundraising
Full — shares, convertibles, VCs
Foreign investment (FDI)
Allowed — automatic / approval route
Suitable for
Startups, businesses planning growth or funding
Not sure which structure is right for you?
Book a free 30-minute consultation with our CA team. We will evaluate your business model, tax efficiency, investor requirements, and compliance budget before recommending a structure.
Statutory Basis
Companies Act, 2013
Governs Private Limited Companies, One Person Companies, and Public Limited Companies. Registration via MCA21 SPICe+ form.
Limited Liability Partnership Act, 2008
Governs LLPs. Annual filings: Form 8 (Statement of Accounts) and Form 11 (Annual Return) on MCA21.
Indian Partnership Act, 1932
Governs unregistered and registered partnership firms.
Income Tax Act, 1961 — Tax Rates
Partnership firms and LLPs taxed at 30% + surcharge + 4% cess [Section 112]. Companies with turnover ≤ ₹400 crore: 25% + surcharge + 4% cess [Section 115BAB / 115BAA]. Default company rate: 30%.
Statutory Audit Requirements
Companies Act, 2013 Section 139 — every company must appoint a statutory auditor. LLP audit required if turnover > ₹40 lakh or contribution > ₹25 lakh [LLP Act, 2008 Section 34]. Proprietorship/Partnership: Tax audit under Section 44AB of Income Tax Act if turnover > ₹1 crore (₹2 crore if Section 44AD applies).
Not sure which structure is right for you?
Book a free 30-minute consultation with our CA team. We will evaluate your business model, tax efficiency, investor requirements, and compliance budget before recommending a structure.
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