Business Structure Comparison Tool — Choose the Right Entity
Compare all Indian business structures side-by-side: Private Limited Company, OPC, LLP, Partnership Firm, and Sole Proprietorship. See differences in liability protection, tax treatment, compliance burden, funding access, and registration cost. Select your priorities and get a personalised recommendation for your business.
Compare Business Structures
Detailed Structure Comparison
All business structures are registered through the Ministry of Corporate Affairs (MCA) portal, except sole proprietorships and partnerships. The ICAI recommends choosing structure based on long-term goals, not just initial cost.
| Feature | Pvt Ltd | OPC | LLP | Partnership | Sole Prop |
|---|---|---|---|---|---|
| Liability | Limited | Limited | Limited | Unlimited | Unlimited |
| Min Members | 2 | 1 | 2 | 2 | 1 |
| Separate Legal Entity | Yes | Yes | Yes | No | No |
| Perpetual Succession | Yes | Yes | Yes | No | No |
| Funding Access | Best (VC/Angel) | Limited | Moderate | Poor | Poor |
| Tax Rate | 25% | 25% | 30%+cess | 30%+cess | Slab rate |
| Audit Mandatory | Yes (always) | Yes | If >₹40L TO | If >₹1Cr TO | If >₹1Cr TO |
| ROC Filing | Yes | Yes | Yes (simpler) | No | No |
| Registration Cost | ₹7K–20K | ₹6K–15K | ₹5K–12K | ₹1K–5K | ₹0–2K |
| Annual Compliance | ₹50K–1.5L | ₹30K–80K | ₹10K–40K | ₹5K–15K | ₹5K–10K |
How to Use This Comparison Tool
Answer the 4 questions above about your priorities — liability protection, funding plans, expected turnover, and number of founders. The tool scores each structure (Pvt Ltd, LLP, OPC, Partnership, Sole Proprietorship) based on your inputs and recommends the best fit.
The scoring considers real-world trade-offs: Pvt Ltd scores highest for funding access but lower for compliance simplicity. LLP wins on tax efficiency for professional firms. Sole proprietorship dominates when minimal compliance is the top priority. Use the detailed comparison table below to explore each parameter in depth, then consult a CA for your specific tax situation.
Tax Implications by Business Structure
| Structure | Tax Rate | Surcharge | Dividend Tax | MAT/AMT |
|---|---|---|---|---|
| Pvt Ltd (Sec 115BAA) | 22% + cess | 10% above ₹1Cr | At slab rate | 15% MAT |
| Pvt Ltd (Normal) | 25% / 30% | 7%/12% tiered | At slab rate | 15% MAT |
| LLP | 30% + cess | 12% above ₹1Cr | Not applicable | 18.5% AMT |
| Partnership Firm | 30% + cess | 12% above ₹1Cr | Not applicable | 18.5% AMT |
| Sole Proprietorship | Slab rate (0–30%) | Per individual slab | Not applicable | Not applicable |
Under the Income Tax Act, Pvt Ltd companies opting for Section 115BAA pay an effective rate of ~25.17% but forego deductions like 80-IAC. Startup India recognised companies can claim 3 years of 100% tax exemption on profits under Section 80-IAC within the first 10 years of incorporation.
Annual Compliance Requirements by Structure
| Compliance | Pvt Ltd | LLP | Partnership | Sole Prop |
|---|---|---|---|---|
| ROC Annual Return | MGT-7A + AOC-4 | Form 11 + Form 8 | N/A | N/A |
| Statutory Audit | Mandatory | If TO > ₹40L or capital > ₹25L | If TO > ₹1Cr | If TO > ₹1Cr |
| Board Meetings | 4/year (min) | None | None | None |
| AGM | 1/year | None | None | None |
| ITR Filing | ITR-6 (mandatory) | ITR-5 (mandatory) | ITR-5 (mandatory) | ITR-3 or ITR-4 |
| GST Returns | GSTR-1 + 3B monthly/quarterly | Same | Same | Same |
| DIR-3 KYC | Annual for all directors | Annual for partners | N/A | N/A |
| Non-Filing Penalty | ₹100/day (no cap) | ₹100/day (no cap) | N/A | Late fee on ITR |
Pvt Ltd companies have the highest compliance burden with 10+ mandatory filings per year. LLP is significantly lighter with just 2 annual ROC forms. Partnership and sole proprietorship primarily need ITR and GST filings. Non-compliance with ROC for 3+ consecutive years can lead to director disqualification and company strike-off.
Need professional help? Our CAs assist businesses across India. Talk to a CA today →