| Features | Proprietorship | Partnership | LLP | Company |
|---|---|---|---|---|
| Definition | A sole proprietorship is an unregistered business entity managed by a single individual. | A legal contract between multiple parties to jointly manage and run a business operation. | A business type that combines aspects of a partnership and the limited liability of a corporation. | A registered business where owners and shareholders have limited liability. |
| Ownership |
For One Person Company |
|||
| Registration Time | 7-10 working days | |||
| Promoter Liability | Unlimited Liability | Limited Liability | ||
| Documentation | ||||
| Governance | No specific governing law | Governed by the terms outlined in the partnership deed | Governed by the LLP agreement | Governed by a formal structure including a Board of Directors |
| Transferability | Business cannot be transferred | Ownership transfer requires the consent of all partners as outlined in the partnership deed. | Transferable | Easily Transferable for public companies. In private companies, there might be some restrictions. |
| Compliance Requirements | ||||
In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.
Each registered entity is required to meet its compliance duties at the close of each financial year. This generally includes auditing financial statements, filing income tax returns, and submitting annual forms to the Ministry of Corporate Affairs (MCA).
| Compliance For | Form | Due date | Penalty |
|---|---|---|---|
| Commencement of Business | Intimation to Registrar for Commencement of Business | Within 180 days from incorporation | INR 50,000 on company and INR 1,000 per day on directors for each day of default |
| Annual KYC of Directors | DIR 3 E-KYC | 30th September of every year | INR 5,000 for late filing |
| Appointment of Auditor | Form ADT 1 | Within 15 days of the AGM | INR 300 per day (max INR 12,000) |
| Financial Statements | Form AOC 4 | Within 30 days from the AGM | INR 100 per day of default |
| Annual Return | Form MGT 7 | Within 60 days from the AGM | INR 100 per day of default |
All Limited Liability Partnerships (LLP) in India must file annual returns with the Ministry of Corporate Affairs (MCA). FilingLounge provides affordable services to help you keep your LLP compliant.
| LLP Compliance | Form | Due date | Penalty |
|---|---|---|---|
| Annual KYC of Directors | DIR 3 KYC | 30th September of every year | INR 5,000 for late filing |
| Annual Return | Form 11 | May 30th every year | INR 100 per day of default |
| Statements of Accounts and Solvency | Form 8 | 30th October every year | INR 100 per day of default (minimum penalty INR 10,000) |
In addition to the filings listed above, there may be other compliance requirements relevant to LLPs. To ensure all compliance needs of your LLP are met, please seek assistance from a Filinglounge Advisor.
| Entity | Compliance | Form | Due date |
|---|---|---|---|
| Private Limited Company | Annual Return | MGT-7 | Within 60 days from the conclusion of the AGM |
| Financial Statements | AOC-4 | Within 30 days from the conclusion of the AGM | |
| DIR-3 KYC | DIR-3 KYC | 30th September every year | |
| Return of Deposits | DPT-3 | 30th June every year | |
| Appointment of Auditor | ADT-1 | Within 15 days from the conclusion of the AGM | |
| Income Tax Return (Non-audit case) | ITR-6 | 31st July every year | |
| Income Tax Return (Audit case) | ITR-6 | 30th September every year | |
| Annual GST Return | GSTR-9 | 31st December of the subsequent financial year | |
| MSME Form | Form 1 (MCA) | half-yearly return by 31st October (April to September), & 30th April for the period October to March every year | |
| Limited Liability Partnership | Income Tax Return (Non-audit case) | ITR 5 | 31st July every year |
| Income Tax Return (Audit case) | ITR 5 | 30th September every year | |
| Annual Return | Form 11 | 30th May every year | |
| Financial Statements | Form-8 | 30th October every year |
Note : There might be extra filings needed depending on your business type and activities. Talk to a FilingLounge advisor to get the right guidance for your company's compliance.
