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A Company is a separate legal entity separate from its promoters |
An OPC is a separate legal entity separate from its promoters |
An LLP is a separate legal entity separate from its promoters |
A Partnership is a legal entity but not different from partners |
The proprietor and the proprietorship business is the same thing |
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Shareholders of a Company are bound to pay only up to the capital they have subscribed to the company. |
In OPC, unlike a proprietorship, the shareholder cannot be asked to pay beyond his subscribed capital |
The partners of an LLP can be called upon to pay only up to the amount of capital they subscribed to. |
There is no protection of limited liability, even the personal properties of partners are at risk for losses of business |
The proprietor is the whole sole of the business, and his liability to the debts or losses of proprietorship is unlimited. |
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A Company can be opened with at least two people. However, the maximum number cannot be more than 200 |
In the case of OPC, Only one person can be a shareholder. He would be required to appoint a nominee. |
With two partners an LLP can be incorporated, there is no limit on the maximum number of partners |
A Partnership firm can start with a minimum of two partners, the, however, the maximum number is capped at 20 |
Only one person is required for proprietorship, also known as proprietor. |
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A company can be opened with at least two and a maximum of 15 directors. The same person can be a shareholder as well as director |
At least one person must be appointed as director of the company. The shareholder and director may be the same person |
The minimum two designated partner is required in an LLP & there is no limit to the maximum number. |
There is no separation of ownership and management in case of a partnership. All partners are equally responsible for the conduct of business. |
In case of a proprietorship, the proprietor is solely responsible for the conduct of business. |
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Foreign Direct Investment in case of a Private Limited Company is available under the automatic route. |
FDI is not allowed in One Person Company |
FDI in LLP Is permitted subject to prior approval from the central government |
FDI is not allowed in Partnership Firm |
FDI is not allowed in proprietorship Business. |
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The shareholding of a Pvt Ltd Company is easily transferable |
OPC Shares can be transferred to new shareholder along with the nominee |
In LLP share of a partner can be transferred with the consent of all other partners. |
Not Possible, every admission or removal of partner amounts to the new firm. |
Not Applicable |
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A Company exists beyond the life of its owners /shareholder. After the death, the shares transmits to legal heirs |
OPC Continues to exist even after the death of its only shareholder, as it passes to the nominee. |
The LLP also have perpetual existence and exists beyond the life of the designated partner |
No perpetual existence, with the death of a partner, the partnership ends. |
No perpetual existence, with the death of the proprietor, it ends. |
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The company tax rate is flat at 25% on its profits |
The company tax rate is 25% on its profits |
LLP Income Tax Rate is 30% on its profits |
Partnership firms are taxed at 30% on its profits |
For a small business with low turnover, there is the benefit of individual tax slabs |
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The company is required to file an annual return, balance sheet to ROC and ITR around the month of September |
OPC is required to file an annual return, balance sheet to ROC and ITR around the month of September |
LLP have to file an annual return in form 11 and financial statement in Form 8 and ITR |
Only ITR is to be filed |
ITR is required to be filed if the taxable income is more than 2.5 Lac |