Which type of Company to register? – #Start Business in India
by Paras Mehra 2.15K
Choosing a form of business to start your business in India is the crucial step and hence proper attention should be given. Let us analyze each entity type based on the advantage, disadvantage and other available information.
|
|
Private Limited Company |
One Person Company |
Limited Liability Partnership |
|
Registration Cost |
Rs. 13000 (all inclusive) |
11,000 (all inclusive) |
7,500 (all inclusive) |
|
Time for registration |
10 to 15 Days |
10 to 15 Days |
25 to 40 Days |
|
Recommended for |
Startups |
For Single person planning to start the business in India |
For traditional businesses |
|
Yearly Cost |
10 to 12 thousand |
8 to 12 thousand |
5 to 10 thousand |
|
Income Tax Rate |
30% |
30% |
30% |
|
Raise Funding |
Yes, by selling equity shares |
No, this feature is not available |
No, this feature is not available |
|
Terms between founders |
Written and documented less chances of fraud if drafted properly. |
Not applicable (single owner company) |
Written and documented less chances of fraud if drafted properly. |
|
Hiring employees |
Hiring is easy, benefit of corporate environment. |
Hiring is easy, benefit of corporate environment. |
Hiring is little difficult, as it is partnership firm. |
|
Loan facility to employee |
Salary from Private Company makes them eligible for personal Loan |
Salary from OPC makes them eligible for personal Loan |
Employees not eligible for Personal Loan under LLP. |
Conclusion
You can decide the form of business based on the information above. In case you require more information, you can call us at 9540618336 or email at agam@hubco.in.
For more information on the type of companies, click on the following links: