| Proprietorship | Partnership/LLP | Private Limited Company | |
| Formation & Registration | Easy | Moderate | High formalities |
| Liability | Unlimited | Unlimited – Regular Partnership firm
Limited – LLPs |
Limited |
| Salary to Proprietor/Partner/Director | Not Allowed | Allowed Subject to restrictions | Allowed. No restrictions |
| Interest on Capital | Not Allowed | Allowed – Max @ 12% | Allowed with out restriction |
| Perpectual Succession | No | No | Yes |
| Documentation | Very Very Less | Less | |
| Tax Rate | 30% | 30% | 30% |
| Max. no of Partners | 1 | 12 | 50 |
| Audit Requirement | NA (If turnover is less than 40 Lakhs) | For firms – NA(If turnover is less than 40 Lakhs)
For LLP- Compulsory |
Compulsory |
| Basic Income exemption limit | 160000 | Nil | Nil |
B S Sridhar & Co., Chartered Accountants
Chartered Accountant firm in Chennai - Tax Filing (Income-tax & GST) ,Tax (Income-tax & GST) Consulting, Audit & Assurance, Accounting, Company Registration , NRI Taxation Services
