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Private Limited Company

Separate legal entity with limited liability protection.

Limited Liability Partnership

Flexibility of a partnership with limited liability.

One Person Company

Single promoter with limited liability protection.

Partnership

Shared responsibility with unlimited liability.

Sole Proprietorship

Simplest form with full control and unlimited liability.

Foreign Subsidiary

Expand into India with a fully owned foreign subsidiary.

Section 8 Company

Non-profit with corporate structure and tax benefits.

Public Limited Company

Raise capital from the public with shares on exchange.

Compare your options before incorporation of company

Private Limited Company Limited Liability Partnership Partnership One Person Company (OPC) Sole Proprietorship

Do I need a Registration?	Yes, Ministry of Corporate Affairs registers Private limited company under the Companies Act, 2013
What type of business names can I keep?	Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not similar to any registered LLPs or companies
How risky is it for me?	Private Limited Company is a separate legal person in the eyes of law, registered under Companies Act 2013. So, the shareholders are not responsible for business liabilities.
To what extent is each member of the business liable?	Liability is limited to his/her share capital contribution.
Tell me the minimum membership limit	2 People
Is foreign ownership allowed?	Yes
How much will I get taxed	Profits get taxed at 25% plus cess and surcharge. Is applicable if profit exceeds 1 Cr
What are my annual tax filing norms?	Every financial year Private Limited Company must file Annual Accounts and Annual Return with the Registrar of Companies. Plus, Income Tax must be filed separately.
Is Annual Audit Required?	Statutory audit is to be conducted irrespective of business transaction and turnover. Income tax audit is applicable if turnover exceeds 2 Crs
Can I convert my business into any other legal form?	Yes, Private Limited Company can be converted into a Public Company or LLP. Even, Public Limited Company can be converted into a Private Limited Company.
Compulsory Conversion to Private Limited Company Applicable?	NO

Do I need a Registration?	Ministry of Corporate Affairs registers an LLP business under the Limited Liability Partnership Act, 2008.
What type of business names can I keep?	Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not similar to any registered LLPs or companies
How risky is it for me?	"LLP" is a separate legal person in the eyes of law, registered under LLP Act 2008. So, the partners are not responsible for business liabilities.
To what extent is each member of the business liable?	Liable to the extent of their contribution (in money, in kind or in services extended) to the LLP
Tell me the minimum membership limit	2 People
Is foreign ownership allowed?	Yes
How much will I get taxed	Profits get taxed at 30% plus cess and surcharge. Is applicable if profit exceeds 1 Cr
What are my annual tax filing norms?	Every financial year Annual Statement of Accounts & Solvency and Annual Return with the Registrar Plus, Income Tax must be filed separately.
Is Annual Audit Required?	Statutory audit is to be conducted if partners contribution exceeds 25 lakhs or turnover exceeds 40 lakhs. Income tax audit is applicable if turnover exceeds 2 Crs
Can I convert my business into any other legal form?	Yes, Private Limited Company can be converted into a Public Company or LLP. Even, Public Limited Company can be converted into a Private Limited Company.
Compulsory Conversion to Private Limited Company Applicable?	NO

Do I need a Registration?	Yes, Register with Registration of Firms
What type of business names can I keep?	Firm can use any name that he likes, but avoiding names already trademarked is advisable
How risky is it for me?	Partners will stand liable for the liabilities of the business
To what extent is each member of the business liable?	Unlimited liability
Tell me the minimum membership limit	2 People
Is foreign ownership allowed?	No
How much will I get taxed	Profits get taxed at 30% plus cess and surcharge. Is applicable if profit exceeds 1 Cr
What are my annual tax filing norms?	Only Income Tax must be filed for the income of firm and partners.
Is Annual Audit Required?	Only income tax audit is applicable if the turnover exceeds limit of 2 Cr
Can I convert my business into any other legal form?	Yes, Partnership can be converted into a Private Limited Company or LLP
Compulsory Conversion to Private Limited Company Applicable?	NO

Do I need a Registration?	Yes, Ministry of Corporate Affairs registers One Person Companies under the Companies Act, 2013
What type of business names can I keep?	Firstly, submit a set of names to Registrar of Companies, wait for approval from Registrar. Best practice is that the names submitted must be inoffensive, legal and not similar to any registered LLPs or companies
How risky is it for me?	OPC is a separate legal person in the eyes of law. So, the share holder is not responsible for business liabilities.
To what extent is each member of the business liable?	Liability is limited to his/her share capital contribution
Tell me the minimum membership limit	1 Person
Is foreign ownership allowed?	NA
How much will I get taxed	Profits get taxed at 25% plus cess and surcharge. Is applicable if profit exceeds 1 Cr.
What are my annual tax filing norms?	Every financial year OPC must file Annual Accounts and Annual Return with the Registrar of Companies. Plus, Income Tax must be filed separately
Is Annual Audit Required?	Statutory audit is to be conducted irrespective of business transaction and turnover. Income tax audit is applicable if turnover exceeds 2 Crs.
Can I convert my business into any other legal form?	OPC could be converted into any legal form. But, it depends on the number of promoters, business operations, funding requirements and other factors. Limited Liability Partnership or Private Company is preferred by promoters when seeking expansion of their OPC
Compulsory Conversion to Private Limited Company Applicable?	NO

Do I need a Registration?	No legal requirement to do so.
What type of business names can I keep?	Promoter can use any name that he likes, but avoiding names already trademarked is advisable
How risky is it for me?	Promoter will stand liable for the liabilities of the business. Because the business is not considered as a separate legal person/entity
To what extent is each member of the business liable?	Unlimited liability.
Tell me the minimum membership limit	1 Person
Is foreign ownership allowed?	NA
How much will I get taxed	Individual income tax slab of the proprietor is the basis of taxation.
What are my annual tax filing norms?	Only Income Tax must be filed on the basis on proprietor's income.
Is Annual Audit Required?	Only income tax audit is applicable if the turnover exceeds limit of 2 Cr.
Can I convert my business into any other legal form?	No
Compulsory Conversion to Private Limited Company Applicable?	Yes, if turnover exceeds 2 cr

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Trusted Advisory Partner

"Targolegal has streamlined our financial planning, compliance, and decision-making with practical, personalized guidance."

Company Founder

Anish CEO, INTERAINS Private Limited

Game-Changing Support

"Their accounting and compliance support lets us focus on growth while they handle everything seamlessly."

Company Founder

Gitto Niclavose CEO, Bighead Techies LLP

Reliable Retainership

"Their retainership services in accounting, taxation, and HR have kept our operations smooth and worry-free."

Company Founder

Nishad Ali CEO & Co-Founder, Teltonica India Pvt Ltd

Professional & Proactive

"Their expertise in accounting and compliance keeps us on track, allowing us to focus fully on scaling our business."

Company Founder

Nasim Ahmad Ansari CEO, Facile Consulting Pvt Ltd

Highly Dependable

"Accurate accounting and timely compliance support have made managing our business significantly easier."

Company Founder

Mohan Jacob Managing Director, Janani Trades Pvt Ltd

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