Private Limited Company
Companies Act, 2013 | 2–200 shareholders | Limited to shares | Registration Mandatory | Separate legal entity | No minimum capital | Corporate tax rates (22%-30%) | High compliance | annual filings | Directors appointed by shareholders | FDI (Foreign Investment) Allowed in most sectors | Startups, scalable businesses
Public Limited Company
Companies Act, 2013 | Unlimited public shareholders | Limited to shares | Separate legal entity | Registration mandatory | High capital requirement | Corporate tax rates | Very high compliance; public filing | Managed by board of directors | Ownership Freely transferable | FDI (Foreign Investment) Allowed with restrictions | Large-scale businesses
LLP (Limited Liability Partnership)
LLP Act, 2008 | 2 or more partners | Limited to partners’ contribution | Separate legal entity | Registration Mandatory | No minimum capital | Flat 30% tax rate | Moderate compliance | Managed by designated partners | Restricted by partner agreement | Limited unless reconstituted | FDI (Foreign Investment) Allowed with approval | Small businesses, startups
Sole Proprietorship
Single owner | Minimum Capital Owner’s resources | Governance Fully controlled by owner | Business Continuity Ends with owner’s exit | FDI (Foreign Investment) Not allowed | Best For Freelancers, small traders |
Partnership Firm
Partnership Act, 1932 | 2–50 partners | Unlimited liability | Legal Entity Status Not a separate entity | Registration Optional | Minimum Capital No minimum capital | Taxed as individual income | Minimal compliance | Jointly managed by partners | Ownership Transfer Requires mutual consent | Business Continuity Ends unless reformed | FDI (Foreign Investment) Not allowed | Best For Small family businesses
One Person Company (OPC)
Limited liability | Separate legal entity | Perpetual succession
