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