When you consider to start new business, you may choose from various options for organisational structure based on ownership, profit sharing, control, risk, compliance and Tax Payment preferences. Here, we have tried to create a simple metric which will help you make your decision faster.
| Factor | Sole Proprietorship | Partnership | Limited Liability Partnership | OPC | Private Limited | Public Limited |
|---|---|---|---|---|---|---|
| Ownership & Profit sharing | One Person i.e. owner of the business | Partners | Designated Partners | One person holds all the shares | Shareholders (Share to be given to friends and family) | Shareholders (Shares to be given to public at large) |
| Control | One Person i.e. owner of the business | Partners | Designated Partners | Person holding shares | Shareholders and Directors | Shareholders and Directors |
| Risk / Liability | Unlimited Liability | Unlimited Liability | Limited Liability | Limited Liability (upto the value of shares subscribed) | Limited Liability (upto the value of shares subscribed) | Limited Liability (upto the value of shares subscribed) |
| Legal Registrations and Compliance level | Low | Low | Medium | High | High | Very High |
| Income Tax* (excluding surcharge, Cess etc.) | 10% to 30% | 30% | 30% | 30% | 30% | 30% |