| Features | Sole Proprietorship Business | General Partnership | LLP (Limited Liability Partnership) | Private Limited Company |
|---|---|---|---|---|
| Registration | Not required | Optional | Mandatory | Mandatory |
| Business Name Approval | Not required | Not required | Approval required prior to incorporation | Approval required prior to incorporation |
| Legal Status | Not a legal entity | Not a separate legal entity | Separate legal entity | Separate legal entity |
| Ownership | Proprietor | Partners | Partners of LLP | Members |
| Persons | Min: 1, Max : 1 | Min: 2, Max: 20 | Min : 2, Max: No Limit | Min: 2, Max: 50 |
| Charter Document | None | Partnership Deed | LLP Agreement | Memorandum of Association (MoA) and Articles of Association (AoA) |
| Business Licenses | Applicable as per requirements | Applicable as per requirements | Applicable as per requirements | Applicable as per requirements |
| Existence | Till death of Owner | Till dissolution | Perpetual succession | Perpetual succession |
| Compliance/Legal Requirements | Low | Low | Moderate | High |
| Income Tax Rates | Individual rates | 30% | 30% | 30% |
| Liability | Unlimited. Personal property is also covered | Unlimited. Personal property is also covered | Limited upto contribution in LLP (except in case of Fraud) | Limited upto extent of shares hold (except in case of Fraud) |
| Capacity to Sue | Individual level | As a Firm (in case of registered firms). Individually/ Collectively (in case of not registered firms) | As a Firm | As a Company |
| Market Reputation | Low | Low | Moderate | High |
| Winding up/ Dissolution | Easy | Easy | Prescribed process to be followed | Prescribed process to be followed |
| Start Now | Start Now | Start Now | Start Now |
