Are you ready to register your private limited or limited company? Look no further, as Tax Mother is here to assist you every step of the way during the registration process.
Don’t hesitate to reach out to us today for expert guidance and a seamless, hassle-free Pvt Ltd or Ltd company registration experience.
Basis | Proprietorship Firm | Partnership Firm | Private Limited Company | Public Limited Company | Limited Liability Partnership |
---|---|---|---|---|---|
Prevailing Law | No specific law | Indian Partnership Act, 1932 | Companies Act, 2013 | Companies Act, 2013 | Limited Liability Partnership Act, 2008 |
Capital Required | No minimum amount | No minimum amount | No minimum amount (Standard 1 Lakh for Pvt. Ltd. Company) | Minimum authorized and subscribed capital required | No minimum amount |
Name of Entity | Any name as per choice | Any name as per choice | Name to contain ‘Private Limited’ as suffix | Name to contain ‘Limited’ as suffix | Name to contain ‘Limited Liability Partnership’ or ‘LLP’ as suffix |
Procedure | KYC of Proprietor | KYC of All Partners | KYC of All Directors | KYC of All Directors | KYC of All Partners |
Apply Tax Registration | Prepare, Sign & Notarize Partnership Deed | Apply for Digital Signature of Directors | Apply for Digital Signature of Directors | Apply for Digital Signature of Partners | |
Approval and Ready | Apply to Registrar of Firms | Apply for DIN of Directors | Apply for DIN of Directors | Apply for DIN of Partners | |
Apply Pan Card | Apply for RUN for Name Approval | Apply for RUN for Name Approval | Apply for Name Approval with Form 1 | ||
Approval, Pan Generated & Ready | Prepare MOA, AOA & Other Incorporation Documents | Prepare MOA, AOA & Other Incorporation Documents | Prepare Partnership Agreement & Other Incorporation Documents | ||
File SPice+ with MCA | File SPice+ with MCA | File Form 2 & 3 with MCA | |||
Approval with COI, PAN, TAN & GST | Approval with COI, PAN, TAN & GST | Approval with COI, PAN, TAN & GST | |||
Pre-Approval of Name | Not Required | Not Required | Required | Required | Required |
Registration | Any Tax Registration will suffice | Optional with Registrar of Firms | Registration with Registrar of ROC required (MCA) | Registration with Registrar of ROC required (MCA) | Registration with Registrar of LLP required (MCA) |
Creation | N/A (Not a separate legal entity) | Created by contract with 2 persons | Created by Law | Created by Law | Created by Law |
Distinct Entity | Not a separate legal entity | Not a separate legal entity | Is a separate legal entity under the Companies Act, 2013 | Is a separate legal entity under the Companies Act, 2013 | Is a separate legal entity under the Limited Liability Partnership Act, 2008 |
Compliance Complexity | Minimal | Moderate | High | High | Moderate |
Number of Directors | Not applicable | Not applicable | Minimum 2 Directors | Minimum 3 Directors | Minimum 2 Designated Partners |
Statutory Audit Requirement | Not applicable | Not applicable | Applicable (based on turnover and other thresholds) | Applicable (based on turnover and other thresholds) | Applicable (based on turnover and other thresholds) |
Mandatory Annual Filings | No Annual Filings required | No Annual Filings required | Mandatory (Annual Returns, Financial Statements, etc.) | Mandatory (Annual Returns, Financial Statements, etc.) | Mandatory (Annual Returns, Financial Statements, etc.) |
Ownership Transferability | Not possible | Not possible | Possible | Possible | Possible |
Foreign Ownership | Not allowed | Allowed | Allowed | Allowed | Allowed |
Admission as Partner/Member | Not applicable | By agreement | By agreement | By agreement | By agreement |
Annual Filing | Not applicable | Not applicable | Yes | Yes | Yes |
Cessation as Partner/Member | Not applicable | By agreement | By agreement | By agreement | By agreement |
Charter Document | Not applicable | Partnership Deed | Memorandum of Association and Articles of Association | Memorandum of Association and Articles of Association | LLP Agreement |
Common Seal | Not applicable | Optional | Optional | Mandatory | Not applicable |
Compliances | Few | Moderate | More | More | Moderate |
Contracts | Personal liability | Joint liability | Limited liability | Limited liability | Limited liability |
Credit Worthiness of Organization | Personal credit | Partners’ credit | Separate entity’s credit | Separate entity’s credit | Separate entity’s credit |
Digital Signature | Not applicable | Not applicable | Required for filing | Required for filing | Required for filing |
Director Identification Number | Not applicable | Not applicable | Required for directors | Required for directors | Not applicable |
Dissolution | Not applicable | By agreement | By legal process | By legal process | By agreement |
Dividend Distribution Tax | Not applicable | Not applicable | Yes | Yes | Not applicable |
Formalities of Incorporation | Not applicable | Not applicable | Required | Required | Required |
Legal Proceedings | Personal liability | Joint liability | Limited liability | Limited liability | Limited liability |
Liability of Partners/Members | Unlimited | Jointly and severally | Limited | Limited | Limited |
Maintenance of Minutes | Not applicable | Not applicable | Required | Required | Not applicable |
Number of Members | Single owner | Minimum 2 | Minimum 2 | Minimum 7 | Minimum 2 |
Oppression and Mismanagement | Not applicable | Applicable | Applicable | Applicable | Applicable |
Ownership of Assets | Personal ownership | Joint ownership | Company ownership | Company ownership | LLP ownership |
Perpetual Succession | Not applicable | Not applicable | Yes | Yes | Yes |
Principal/Agent Relationship | Not applicable | Partners act as agents | Directors act as agents | Directors act as agents | Partners act as agents |
Share Certificate | Not applicable | Not applicable | Issued to shareholders | Issued to shareholders | Not applicable |
Statutory Meetings | Not applicable | Not applicable | Required | Required | Not applicable |
Tax Liability | Individual tax rates | Partnership tax rates | Corporate tax rates | Corporate tax rates | Partnership tax rates |
Transfer of Share/Partnership rights in case of death | Not applicable | By agreement | By transfer of shares/partnership interest | By transfer of shares/partnership interest | By agreement |
Voting Rights | Not applicable | As per agreement | Proportional to shareholding | Proportional to shareholding | As per agreement |
Accounting Standards | Personal discretion | Partners’ discretion | Required by law | Required by law | Required by law |
Annual Compliance Cost | Low | Moderate | High | High | Moderate |
Audit of Accounts | Not applicable | Not applicable | Required | Required | Required |
Board Meetings | Not applicable | Not applicable | Required | Required | Not applicable |
Books of Account | Personal records | Partnership records | Mandatory | Mandatory | Mandatory |
Borrowing | Personal capacity | Joint capacity | Limited capacity | Limited capacity | Limited capacity |
Conversion | Not applicable | Possible | Possible | Possible | Possible |
Foreign Member | Not applicable | Possible | Possible | Possible | Possible |
Foreign Participation | Not applicable | Possible | Possible | Possible | Possible |
GST Applicability & Rates | Personal capacity | Partnership capacity | Corporate capacity | Corporate capacity | Partnership capacity |
Income Tax | Individual tax rates | Partnership tax rates | Corporate tax rates | Corporate tax rates | Partnership tax rates |
Legal Status | Personal | Joint | Separate legal entity | Separate legal entity | Separate legal entity |
Liability Limitation | No | Joint liability | Limited liability | Limited liability | Limited liability |
Managerial Personnel | Not applicable | Not applicable | Required | Required | Not applicable |
Merger-Amalgamation | Not applicable | Not applicable | Possible | Possible | Not applicable |
Min vs Max No of Directors | 1 to N/A | 2 to N/A | 2 to 15 | 3 to 15 | 2 to N/A |
Min vs Max No of Shareholders/Members | 1 to N/A | 2 to N/A | 2 to 200 | 7 to unlimited | 2 to N/A |
Min vs Max Revenue/Year | N/A | N/A | Varies | Varies | N/A |
Name Approval | Not applicable | Not applicable | Required | Required | Required |
Owners Remuneration | Personal discretion | As per agreement | Permissible | Permissible | Permissible |
Remuneration of Managerial Personnel | Not applicable | Not applicable | Regulated | Regulated | Not applicable |
Start Up India | Not applicable | Not applicable | Eligible | Eligible | Not applicable |
Startup Accreditation | Not applicable | Not applicable | Eligible | Eligible | Not applicable |
Transfer/Inheritance of Rights | Not applicable | By agreement | By transfer of shares/partnership interest | By transfer of shares/partnership interest | By agreement |
Transferability | Not applicable | By agreement | By transfer of shares | By transfer of shares | By agreement |
Looking for your private limited pvt ltd or limited ltd company registration? Tax Mother is here to assist you every step of the way. Reach out today for expert guidance and a hassle-free registration experience.