Business structure comparison
Indicative tax and compliance burden across the main entity types. The right structure depends on liability, draw needs, and incorporation cost — not tax alone.
Indicative tax + compliance (lowest tax: Sole proprietor)
Sole proprietor: ₹4,29,000
Compliance: Light (ITR-3/4; 44AD if eligible) · Liability: Unlimited personal
Partnership / LLP: ₹4,29,000
Compliance: Medium (firm return + partner returns; LLP MCA filings) · Liability: Partnership: unlimited. LLP: limited.
Cannot use 44AD. 194T 10% TDS on partner remuneration.
Private Limited / OPC: ₹6,20,360
Compliance: Heavy (MCA, audit, board, ROC) · Liability: Limited
Dividends taxed again in shareholder hands.
HUF: ₹4,29,000
Compliance: Light (separate PAN/ITR) · Liability: HUF property only
Requires genuine ancestral/gifted corpus — not a paper construct.
Full guide: choosing a business structure →
NOT financial advice - seek advice from a professional for your specific situation
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