![\"Entities](\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-50.png\")
<\/figure><\/div>\n\n\n\nRegistering Authority<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– Private Limited Company Registration<\/strong><\/a> has to be done with a Ministry of Corporate Affairs under the Companies Act 2013.<\/li>
- One Person Company<\/em><\/strong>– One Person Company Registration<\/strong><\/a> has to be done with a Ministry of Corporate Affairs under the Companies Act, 2013.<\/li>
- Limited Liability Partnership<\/em><\/strong>– Limited Liability Partnership Registration<\/strong><\/a> has to be done with the Ministry of Corporate Affairs (MCA) under the Limited Liability Partnership Act, 2008.<\/li>
- Partnership Firm-<\/em><\/strong> Partnership can be registered or it can be unregistered. Partnership Firm Registration<\/strong><\/a> is optional. In case of registration, the Partnership will get registered under the Partnership Act, 1932.<\/li>
- Sole Proprietorship<\/em><\/strong>– There is no formal registration for Sole Proprietorship<\/strong><\/a>.<\/li><\/ul>\n\n\n\n
Name of entity<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– The choice of name provided by a Promoter has to be approved by the Registrar of the Company. Only names that are not identical or similar to an existing company or Limited Liability Partnership name. Also the name must not be offensive or illegal. The name of the entity will end with the words \u201cPvt Ltd\u201d or \u201cPrivate Limited Company\u201d.<\/li>
- One Person Company<\/em><\/strong>– The choice of name provided by a Promoter has to be approved by the Registrar of the Company. Only names that are not identical or similar to an existing company or Limited Liability Partnership name and names that are not offensive or illegal would be allowed. The name of the entity will end with the words \u201cOPC\u201d or \u201cOne Person Company\u201d.<\/li>
- Limited Liability Partnership<\/em><\/strong>– The choice of name provided by a Promoter must be approved by the Registrar of Company. Only names that are not identical or similar to an existing company or Limited Liability Partnership name. Also the name must not be offensive or illegal. The name of the entity will end with the words \u201cLLP\u201d or \u201cLimited Liability Partnership\u201d.<\/li>
- Partnership Firm<\/em><\/strong>– Promoters have to choose the name that can be used for the Partnership. The approval is not necessary for using name. However, it is good to avoid names that have already been trademarked.<\/li>
- Sole Proprietorship<\/em><\/strong>– Promoters have to choose the name that can be used for the Sole Proprietorship. The approval is not necessary for using name. However, it is good to avoid names that have already been trademarked.<\/li><\/ul>\n\n\n\n
Read our article<\/b>:What is the Documents Required For Private Company Registration?<\/a><\/mark><\/p>\n\n\n\nLegal Status of Entity<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– Private Limited Company has the separate legal entity registered under the Companies Act, 2013. The Directors and the Shareholders of the Private Limited Company are not personally liable for the liabilities of a Company.<\/li>
- One Person Company<\/em><\/strong>– One Person Company has the separate legal entity which is registered under the Companies Act, 2013<\/strong><\/em>[1]<\/strong><\/em><\/a><\/sup>. The Director of a One Person Company is not personally liable for the liabilities of a Company.<\/li>
- Limited Liability Partnership<\/em><\/strong>– Limited Liability Partnership has the separate legal entity registered under the LLP Act, 2008. The partners of LLP are not personally liable for the liabilities of the Limited Liability Partnership.<\/li>
- Partnership Firm<\/em><\/strong>– Partnership is not recognised as a separate legal entity and therefore the promoters becomes personally liable for the liabilities of a partnership.<\/li>
- Sole Proprietorship<\/em><\/strong>– Proprietorship is not recognised as a separate legal entity and therefore the promoter becomes personally liable for the liabilities of a Sole Proprietorship.<\/li><\/ul>\n\n\n\n
Members Liability<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– The shareholders\nhave limited liability and are liable only to an extent of their share capital.<\/li>
- One Person Company<\/em><\/strong>– The Director and\nNominee Director have limited liability and is liable only to the extent of\nhis\/her share capital.<\/li>
- Limited Liability Partnership<\/em><\/strong>– The Partners\nhave limited liability and are liable only to the extent of their contribution\nto the LLP.<\/li>
- Partnership Firm<\/em><\/strong>– The Partners have\nunlimited liability and they can be held responsible for all the liabilities of\nthe Partnership Firm.<\/li>
- Sole Proprietorship<\/em><\/strong>– Proprietor has\nunlimited liability and is responsible for all the liabilities of the Sole Proprietorship.<\/li><\/ul>\n\n\n\n
Minimum Number of Members<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– A minimum\nof 2 members are required to start the Private Limited Company.<\/li>
- One Person Company<\/em><\/strong>– A minimum of 1\nmember is required to start the One Person Company.<\/li>
- Limited Liability Partnership<\/em><\/strong>– A\nminimum of 2 members are required to start the Limited Liability Partnership.<\/li>
- Partnership Firm<\/em><\/strong>– A minimum of 2\nmembers are required to start the Partnership Firm.<\/li>
- Sole Proprietorship<\/em><\/strong>– A single person\nas sole proprietor can start a Sole Proprietorship business.<\/li><\/ul>\n\n\n\n
Maximum Number of Members<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– A Private\nLimited Company can have a maximum of 200 shareholders or members.<\/li>
- One Person Company<\/em><\/strong>– A One Person\nCompany can have 2 people, viz. Director and Nominee Director.<\/li>
- Limited Liability Partnership<\/em><\/strong>– A\nLimited Liability Partnership can have unlimited number of Partners.<\/li>
- Partnership Firm<\/em><\/strong>– In the Partnership\nFirm the maximum number of partners can only be 20.<\/li>
- Sole Proprietorship<\/em><\/strong>– In the sole\nproprietorship only one person runs the business as a proprietor.<\/li><\/ul>\n\n\n\n
Foreign Ownership<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– Foreigners\nmust be allowed to invest in a Private Limited Company under a Automatic\nApproval route in most sectors.<\/li>
- One Person Company<\/em><\/strong>– Director and\nNominee Director cannot be Foreigners.<\/li>
- Limited Liability Partnership<\/em><\/strong>– Foreigners\nare allowed to invest in a Limited Liability Partnership only with a prior\napproval of (RBI) Reserve Bank of India and (FIPB) Foreign Investment Promotion\nBoard approval.<\/li>
- Partnership Firm<\/em><\/strong>– Foreigners are not\nallowed to start a Partnership Firm.<\/li>
- Sole Proprietorship<\/em><\/strong>– Foreigners are\nnot allowed to start a Sole Proprietorship business.<\/li><\/ul>\n\n\n\n
Transferability<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– In the\nPrivate Limited Company the ownership can be transferred by way of share\ntransfer.<\/li>
- One Person Company<\/em><\/strong>– In the One\nPerson Company the ownership can be transferred.<\/li>
- Limited Liability Partnership<\/em><\/strong>– In\nthe Limited Liability Partnership the ownership can be transferred.<\/li>
- Partnership Firm<\/em><\/strong>– In the Partnership\nFirm the ownership can be transferred by making changes in the partnership deed.<\/li>
- Sole Proprietorship<\/em><\/strong>– In the Sole\nProprietorship the ownership can be transferred by way of inheritance. <\/li><\/ul>\n\n\n\n
Existence or Survivability<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– The\nexistence of Private Limited Company must not be dependent on the Directors or\nShareholders. It can be dissolved only voluntarily or by Regulatory\nAuthorities.<\/li>
- One Person Company<\/em><\/strong>– Existence of a\nOne Person Company is not dependent on the Director or Nominee Director. It can\nbe dissolved only voluntarily or by Regulatory Authorities.<\/li>
- Limited Liability Partnership<\/em><\/strong>– Existence\nof a LLP is not dependent on the Partners. It could be dissolved only\nvoluntarily or by an Order of the Company Law Board.<\/li>
- Partnership Firm<\/em><\/strong>– Existence of a\nPartnership business is dependent on the Partners. It could be up for\ndissolution or death of a Partner.<\/li>
- Sole Proprietorship<\/em><\/strong>– Existence of a\nProprietorship business is dependent on the Proprietor of the business. <\/li><\/ul>\n\n\n\n
Taxation<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– Private\nLimited Company profits are taxed at 30% plus surcharge and cess as applicable.<\/li>
- One Person Company<\/em><\/strong>– One Person\nCompany profits are taxed at 30% plus surcharge and cess as applicable.<\/li>
- Limited Liability Partnership<\/em><\/strong>– Limited\nLiability Partnership profits are taxed at 30% plus surcharge and cess as\napplicable.<\/li>
- Partnership Firm<\/em><\/strong>– Partnership\nprofits are taxed at 30% plus surcharge and cess as applicable.<\/li>
- Sole Proprietorship<\/em><\/strong>– Taxed as\nindividual, based on the total income of the Proprietor.<\/li><\/ul>\n\n\n\n
Annual Statutory Meetings<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– The board\nand General Meetings must be conducted periodically.<\/li>
- One Person Company<\/em><\/strong>– There is a\nrequirement to conduct annual statutory meetings<\/li>
- Limited Liability Partnership<\/em><\/strong>– There\nis no requirement to conduct annual statutory meetings.<\/li>
- Partnership Firm<\/em><\/strong>– There is no\nrequirement to conduct annual statutory meetings<\/li>
- Sole Proprietorship<\/em><\/strong>– There is no\nrequirement to conduct annual statutory meetings. <\/li><\/ul>\n\n\n\n
Annual Filings<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– Private Limited Company has to file Annual Accounts and Annual Return with the (ROC) Registrar of Companies each year. Income Tax Return<\/strong><\/a> can also be filed for Private Limited Company.<\/li>
- One Person Company<\/em><\/strong>– One Person Company has to file Annual Accounts and Annual Return with the Registrar of Companies each year. The (ITR) Income Tax Return can also be filed for One Person Company.<\/li>
- Limited Liability Partnership<\/em><\/strong>– LLP has to file Annual Statement of Accounts & Solvency and Annual Return with the Registrar each year. Income Tax Return can also be filed for LLP.<\/li>
- Partnership Firm<\/em><\/strong>– No requirements to file annual report with (ROC) Registrar of Companies, Income Tax Return can be filed for the Partnership.<\/li>
- Sole Proprietorship<\/em><\/strong>– No requirements to file annual report with (ROC) Registrar of Companies, Income Tax Return can be filed based on the income of the Proprietorship.<\/li><\/ul>\n\n\n\n
Conclusion<\/h2>\n\n\n\n
A Pvt Ltd Company vs OPC requires more compliance while an limited liability partnership has fewer rules to adhere to. One Person Company is suitable for one business owner but does have a hefty tax rate. A partnership firm and sole proprietorship both are easy to start but come with unlimited liability. We at Corpbiz<\/strong><\/a> provide assistance to a new entrepreneur to choose the best for him\/her such as between Pvt Ltd Company vs OPC and also help our clients in the compliances before and after been registered. <\/p>\n\n\n\n
Name of entity<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– The choice of name provided by a Promoter has to be approved by the Registrar of the Company. Only names that are not identical or similar to an existing company or Limited Liability Partnership name. Also the name must not be offensive or illegal. The name of the entity will end with the words \u201cPvt Ltd\u201d or \u201cPrivate Limited Company\u201d.<\/li>
- One Person Company<\/em><\/strong>– The choice of name provided by a Promoter has to be approved by the Registrar of the Company. Only names that are not identical or similar to an existing company or Limited Liability Partnership name and names that are not offensive or illegal would be allowed. The name of the entity will end with the words \u201cOPC\u201d or \u201cOne Person Company\u201d.<\/li>
- Limited Liability Partnership<\/em><\/strong>– The choice of name provided by a Promoter must be approved by the Registrar of Company. Only names that are not identical or similar to an existing company or Limited Liability Partnership name. Also the name must not be offensive or illegal. The name of the entity will end with the words \u201cLLP\u201d or \u201cLimited Liability Partnership\u201d.<\/li>
- Partnership Firm<\/em><\/strong>– Promoters have to choose the name that can be used for the Partnership. The approval is not necessary for using name. However, it is good to avoid names that have already been trademarked.<\/li>
- Sole Proprietorship<\/em><\/strong>– Promoters have to choose the name that can be used for the Sole Proprietorship. The approval is not necessary for using name. However, it is good to avoid names that have already been trademarked.<\/li><\/ul>\n\n\n\n
Read our article<\/b>:What is the Documents Required For Private Company Registration?<\/a><\/mark><\/p>\n\n\n\nLegal Status of Entity<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– Private Limited Company has the separate legal entity registered under the Companies Act, 2013. The Directors and the Shareholders of the Private Limited Company are not personally liable for the liabilities of a Company.<\/li>
- One Person Company<\/em><\/strong>– One Person Company has the separate legal entity which is registered under the Companies Act, 2013<\/strong><\/em>[1]<\/strong><\/em><\/a><\/sup>. The Director of a One Person Company is not personally liable for the liabilities of a Company.<\/li>
- Limited Liability Partnership<\/em><\/strong>– Limited Liability Partnership has the separate legal entity registered under the LLP Act, 2008. The partners of LLP are not personally liable for the liabilities of the Limited Liability Partnership.<\/li>
- Partnership Firm<\/em><\/strong>– Partnership is not recognised as a separate legal entity and therefore the promoters becomes personally liable for the liabilities of a partnership.<\/li>
- Sole Proprietorship<\/em><\/strong>– Proprietorship is not recognised as a separate legal entity and therefore the promoter becomes personally liable for the liabilities of a Sole Proprietorship.<\/li><\/ul>\n\n\n\n
Members Liability<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– The shareholders\nhave limited liability and are liable only to an extent of their share capital.<\/li>
- One Person Company<\/em><\/strong>– The Director and\nNominee Director have limited liability and is liable only to the extent of\nhis\/her share capital.<\/li>
- Limited Liability Partnership<\/em><\/strong>– The Partners\nhave limited liability and are liable only to the extent of their contribution\nto the LLP.<\/li>
- Partnership Firm<\/em><\/strong>– The Partners have\nunlimited liability and they can be held responsible for all the liabilities of\nthe Partnership Firm.<\/li>
- Sole Proprietorship<\/em><\/strong>– Proprietor has\nunlimited liability and is responsible for all the liabilities of the Sole Proprietorship.<\/li><\/ul>\n\n\n\n
Minimum Number of Members<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– A minimum\nof 2 members are required to start the Private Limited Company.<\/li>
- One Person Company<\/em><\/strong>– A minimum of 1\nmember is required to start the One Person Company.<\/li>
- Limited Liability Partnership<\/em><\/strong>– A\nminimum of 2 members are required to start the Limited Liability Partnership.<\/li>
- Partnership Firm<\/em><\/strong>– A minimum of 2\nmembers are required to start the Partnership Firm.<\/li>
- Sole Proprietorship<\/em><\/strong>– A single person\nas sole proprietor can start a Sole Proprietorship business.<\/li><\/ul>\n\n\n\n
Maximum Number of Members<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– A Private\nLimited Company can have a maximum of 200 shareholders or members.<\/li>
- One Person Company<\/em><\/strong>– A One Person\nCompany can have 2 people, viz. Director and Nominee Director.<\/li>
- Limited Liability Partnership<\/em><\/strong>– A\nLimited Liability Partnership can have unlimited number of Partners.<\/li>
- Partnership Firm<\/em><\/strong>– In the Partnership\nFirm the maximum number of partners can only be 20.<\/li>
- Sole Proprietorship<\/em><\/strong>– In the sole\nproprietorship only one person runs the business as a proprietor.<\/li><\/ul>\n\n\n\n
Foreign Ownership<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– Foreigners\nmust be allowed to invest in a Private Limited Company under a Automatic\nApproval route in most sectors.<\/li>
- One Person Company<\/em><\/strong>– Director and\nNominee Director cannot be Foreigners.<\/li>
- Limited Liability Partnership<\/em><\/strong>– Foreigners\nare allowed to invest in a Limited Liability Partnership only with a prior\napproval of (RBI) Reserve Bank of India and (FIPB) Foreign Investment Promotion\nBoard approval.<\/li>
- Partnership Firm<\/em><\/strong>– Foreigners are not\nallowed to start a Partnership Firm.<\/li>
- Sole Proprietorship<\/em><\/strong>– Foreigners are\nnot allowed to start a Sole Proprietorship business.<\/li><\/ul>\n\n\n\n
Transferability<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– In the\nPrivate Limited Company the ownership can be transferred by way of share\ntransfer.<\/li>
- One Person Company<\/em><\/strong>– In the One\nPerson Company the ownership can be transferred.<\/li>
- Limited Liability Partnership<\/em><\/strong>– In\nthe Limited Liability Partnership the ownership can be transferred.<\/li>
- Partnership Firm<\/em><\/strong>– In the Partnership\nFirm the ownership can be transferred by making changes in the partnership deed.<\/li>
- Sole Proprietorship<\/em><\/strong>– In the Sole\nProprietorship the ownership can be transferred by way of inheritance. <\/li><\/ul>\n\n\n\n
Existence or Survivability<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– The\nexistence of Private Limited Company must not be dependent on the Directors or\nShareholders. It can be dissolved only voluntarily or by Regulatory\nAuthorities.<\/li>
- One Person Company<\/em><\/strong>– Existence of a\nOne Person Company is not dependent on the Director or Nominee Director. It can\nbe dissolved only voluntarily or by Regulatory Authorities.<\/li>
- Limited Liability Partnership<\/em><\/strong>– Existence\nof a LLP is not dependent on the Partners. It could be dissolved only\nvoluntarily or by an Order of the Company Law Board.<\/li>
- Partnership Firm<\/em><\/strong>– Existence of a\nPartnership business is dependent on the Partners. It could be up for\ndissolution or death of a Partner.<\/li>
- Sole Proprietorship<\/em><\/strong>– Existence of a\nProprietorship business is dependent on the Proprietor of the business. <\/li><\/ul>\n\n\n\n
Taxation<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– Private\nLimited Company profits are taxed at 30% plus surcharge and cess as applicable.<\/li>
- One Person Company<\/em><\/strong>– One Person\nCompany profits are taxed at 30% plus surcharge and cess as applicable.<\/li>
- Limited Liability Partnership<\/em><\/strong>– Limited\nLiability Partnership profits are taxed at 30% plus surcharge and cess as\napplicable.<\/li>
- Partnership Firm<\/em><\/strong>– Partnership\nprofits are taxed at 30% plus surcharge and cess as applicable.<\/li>
- Sole Proprietorship<\/em><\/strong>– Taxed as\nindividual, based on the total income of the Proprietor.<\/li><\/ul>\n\n\n\n
Annual Statutory Meetings<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– The board\nand General Meetings must be conducted periodically.<\/li>
- One Person Company<\/em><\/strong>– There is a\nrequirement to conduct annual statutory meetings<\/li>
- Limited Liability Partnership<\/em><\/strong>– There\nis no requirement to conduct annual statutory meetings.<\/li>
- Partnership Firm<\/em><\/strong>– There is no\nrequirement to conduct annual statutory meetings<\/li>
- Sole Proprietorship<\/em><\/strong>– There is no\nrequirement to conduct annual statutory meetings. <\/li><\/ul>\n\n\n\n
Annual Filings<\/h3>\n\n\n\n- Private Limited Company<\/em><\/strong>– Private Limited Company has to file Annual Accounts and Annual Return with the (ROC) Registrar of Companies each year. Income Tax Return<\/strong><\/a> can also be filed for Private Limited Company.<\/li>
- One Person Company<\/em><\/strong>– One Person Company has to file Annual Accounts and Annual Return with the Registrar of Companies each year. The (ITR) Income Tax Return can also be filed for One Person Company.<\/li>
- Limited Liability Partnership<\/em><\/strong>– LLP has to file Annual Statement of Accounts & Solvency and Annual Return with the Registrar each year. Income Tax Return can also be filed for LLP.<\/li>
- Partnership Firm<\/em><\/strong>– No requirements to file annual report with (ROC) Registrar of Companies, Income Tax Return can be filed for the Partnership.<\/li>
- Sole Proprietorship<\/em><\/strong>– No requirements to file annual report with (ROC) Registrar of Companies, Income Tax Return can be filed based on the income of the Proprietorship.<\/li><\/ul>\n\n\n\n
Conclusion<\/h2>\n\n\n\n
A Pvt Ltd Company vs OPC requires more compliance while an limited liability partnership has fewer rules to adhere to. One Person Company is suitable for one business owner but does have a hefty tax rate. A partnership firm and sole proprietorship both are easy to start but come with unlimited liability. We at Corpbiz<\/strong><\/a> provide assistance to a new entrepreneur to choose the best for him\/her such as between Pvt Ltd Company vs OPC and also help our clients in the compliances before and after been registered. <\/p>\n\n\n\n
Read our article<\/b>:What is the Documents Required For Private Company Registration?<\/a><\/mark><\/p>\n\n\n\n A Pvt Ltd Company vs OPC requires more compliance while an limited liability partnership has fewer rules to adhere to. One Person Company is suitable for one business owner but does have a hefty tax rate. A partnership firm and sole proprietorship both are easy to start but come with unlimited liability. We at Corpbiz<\/strong><\/a> provide assistance to a new entrepreneur to choose the best for him\/her such as between Pvt Ltd Company vs OPC and also help our clients in the compliances before and after been registered. <\/p>\n\n\n\nLegal Status of Entity<\/h3>\n\n\n\n
Members Liability<\/h3>\n\n\n\n
Minimum Number of Members<\/h3>\n\n\n\n
Maximum Number of Members<\/h3>\n\n\n\n
Foreign Ownership<\/h3>\n\n\n\n
Transferability<\/h3>\n\n\n\n
Existence or Survivability<\/h3>\n\n\n\n
Taxation<\/h3>\n\n\n\n
Annual Statutory Meetings<\/h3>\n\n\n\n
Annual Filings<\/h3>\n\n\n\n
Conclusion<\/h2>\n\n\n\n