Types of Government Registrations

Recommended For

Ease of Accommodating Investment

Limited Liability Protection

Tax Advantages

Perpetual Existence

Statutory Compliances

Sole Proprietorship

Small Traders and manufactures

Impossible

No

Minimal

NO

Minimal

LLP

Professional Services Firms

Ease of Accommodating Investment

Limited Liability Protection

Tax Advantages

Perpetual Existence

Statutory Compliances

Pvt. Ltd.

Recommended For

Ease of Accommodating Investment

Limited Liability Protection

Tax Advantages

Perpetual Existence

Statutory Compliances

Proprietorship vs Limited Liability Partnership (LLP) vs Company

FeaturesProprietorshipPartnershipLLPCompany
DefinitionUnregistered type of business entity managed by one single personA formal agreement between two or more parties to manage and operate a businessA Limited Liability Partnership is a hybrid combination having features similar to a partnership firm and liabilities similar to a company.Registered type of entity with limited liability to the owners and shareholders
Ownership
  • Sole Ownership
  • Min 2 Partners
  • Max 50 Partners

For One Person Company
  • 1 Director
  • 1 Nominee Director
Registration Time7-9 working days
Promoter LiabilityUnlimited LiabilityLimited Liability
Documentation
  • LLP Deed
  • Incorporation Certificate
GovernanceUnder Partnership ActLLP Act, 2008Under Companies Act,2013
TransferabilityNon TransferableTransferable if registered under ROFTransferable
Compliance Requirements
  • Income tax filing if turnover is more than Rs.2.5 lakhs
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