Business Registration
Entity Type Comparison
Compare Proprietorship, Partnership, LLP and Private Limited — liability, compliance, costs, and best fit with an interactive decision guide.
| Feature | Proprietorship | Partnership | LLP | Private Limited |
|---|---|---|---|---|
| Min. Members | 1 | 2 | 2 | 2 |
| Max. Members | N/A | 50 | Unlimited | 200 |
| Registration | Not required | Optional | Mandatory | Mandatory |
| Liability | Unlimited | Unlimited | Limited | Limited |
| Separate Legal Entity | ✗ No | ✗ No | ✓ Yes | ✓ Yes |
| Perpetual Succession | ✗ No | ✗ No | ✓ Yes | ✓ Yes |
| Tax Rate | Slab rate (individual) | 30% flat | 30% flat | 25% (if turnover ≤₹400 Cr) |
| Audit Requirement | Only if turnover >₹1Cr (₹2Cr presumptive) | If turnover >₹1Cr | If turnover >₹40L or capital >₹25L | Mandatory always |
| Compliance Level | 🟢 Low | 🟡 Medium | 🟠 High | 🔴 Very High |
| Ideal For | Solo traders, freelancers | Small family businesses | Professionals, startups | VC-funded, scaling startups |
| Setup Cost (approx.) | ₹5,000 | ₹10,000 | ₹10,000 | ₹15,000 |
| Annual Compliance Cost | ₹5–15K | ₹10–25K | ₹15–30K | ₹25–50K |
| GST Registration | Optional* | Optional* | Recommended | Recommended |
* GST registration mandatory if turnover exceeds ₹40L (goods) / ₹20L (services).
For general guidance only. Consult your CA for advice specific to your situation.