Optimize your global business footprint with tailored entity structuring. At Finsignments, we specialize in creating flexible, compliant, and efficient entity structures that align with your business goals and international regulations. Our strategic approach ensures tax efficiency, risk mitigation, and operational scalability across multiple jurisdictions.
Factors | Sole Proprietorship | Partnership Firm | Limited Liability Partnership | Private Limited Company | Public Limited Company |
Legal Status | Not a separate legal entity | Not a separate legal entity | Separate legal entity | Separate legal entity | Separate legal entity |
Control and management | Proprietor is the sole owner | Partners of the firm are owners | Partners of the firm are owners | Controlled by Board of Directors | Controlled by Board of Directors |
Minimum and maximum members | Minimum: 1 | Minimum: 2 | Minimum: 2 | Minimum: 2 | Minimum: 7 |
Registration requirement | No formal registration required | Registered under Partnership Act, 1932 | Registered under Limited Liability Partnership Act, 2008 | Registered under Companies Act, 2013 | Registered under Companies Act, 2013 |
Capital raising options | Limited to personal funds | Limited to partner’s contribution | Limited to partner’s contribution | Easier to raise capital through equity, venture capital, etc. | Can raise capital through public issues of shares and debentures |
Liability protection | Unlimited Liability | Unlimited Liability | Limited to the extent of contribution | Limited to the extent of shares held | Limited to the extent of shares held |
Taxation | Taxed as individual income | Taxed as partnership (30% + Cess) | Taxed as partnership (30% + Cess) | Corporate tax at 25% + cess | Corporate tax at 25% + cess |
Compliance | Minimal | Moderate | Moderate to high | High | Very High |
Continuity and succession planning | Depends on the proprietor | Dissolved upon death/ retirement of a partner | Perpetual succession | Perpetual succession | Perpetual succession |
Suitable for | Small businesses with one owner | Small businesses with two or more partners | Service oriented businesses, professionals, etc. | Startups, growing businesses | Large businesses |
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