FEATURES COMPANY OPC LLP PARTNERSHIP FIRM SOLE PROPRIETORSHIP
Legal Structure & Regulatory Authority
Governed by the Companies Act; has a separate legal entity.
Governed by the Companies Act; a single-member entity.
Regulated by the LLP Act, a hybrid form combining elements of a private limited company and a partnership firm.
Governed by the Indian Partnership Act; not a separate legal entity.
Not a separate legal entity; owned by an individual.
Ownership
Owned by shareholders.
Owned by a single individual.
Owned by partners.
Owned by partners.
Owned by a single individual.
Min & Max Members

Public Company: Minimum: 3 Directors & 3 Shareholders


Private/Sec-8 Company: Minimum: 2 Directors & 2 Shareholders
Maximum: 15 Directors &200 shareholders

Minimum 1 member; can convert to a private company if paid-up capital exceeds a threshold.
Minimum 2 partners; no maximum limit.
Minimum 2 partners; maximum 50 Partners.
Single owner.
Liability Of Owners
Limited liability for shareholders.
Limited liability for the sole member.
Limited liability for partners.
Unlimited liability for partners.
Unlimited liability for the owner.
Formation Process & Time
Formal process involving MOA, AOA; time-consuming.
Simplified formation similar to a private company; less time-consuming.
Requires LLP Agreement; less formal than a company; moderate time.
Informal, created through a partnership deed; relatively quick.
Simplest form; no formal registration; quick.
Documentation
MOA, AOA, and various statutory documents.
Similar to a private company; fewer documents.
LLP Agreement, other required documents.
Partnership deed.
Minimal documentation.
Registration Cost & Compliance
Higher registration costs; extensive compliance.
Moderate registration costs; similar compliance to a private company.
Lower registration costs; lesser compliance than a company.
Relatively lower registration costs; moderate compliance.
Minimal registration costs; minimal compliance.
Common Seal Usage
Required and commonly used for official documents.
Optional, not mandatory.
Not required, often not used.
Not applicable, as partnership firms do not have a common seal.
Not applicable, as sole proprietors do not have a common seal.
Management & Decision Making
Board of Directors and shareholders.
Sole member manages the company.
Partners collectively manage.
Partners collectively manage
Sole proprietor makes decisions.
PAN
Company has its own PAN Number
OPC has its own PAN Number
LLP has its own PAN Number
Partnership firm has its own PAN Number
Use sole proprietor PAN number, no separate PAN required.
Brand Image
Generally viewed as more formal and stable.
Carries a corporate image.
Seen as a hybrid, combining features of companies and partnerships.
Image varies; often associated with traditional businesses.
Image may vary; often associated with small businesses.
Priority In Tenders
Often enjoys higher priority in tenders due to its established corporate structure and credibility.
May have a moderate standing, with priority depending on the project and bidding conditions.
Tends to have moderate priority, influenced by the LLP's reputation and track record.
Priority varies, usually based on the partners' credentials and the firm's past performance.
Generally has lower priority, as tenders may favor entities with a more formal organizational structure.
Ease Of Loan
Generally has easier access to loans due to its separate legal entity status and established credit history.
May face challenges as it is a relatively new concept, and lenders may perceive higher risk.
Loan accessibility is moderate, dependent on the LLP's financial standing and partners' creditworthiness.
Access to loans can be limited, relying heavily on the partners' personal creditworthiness.
Limited access to loans, typically tied to the proprietor's personal credit history.
Ease Of Loan
Generally has easier access to loans due to its separate legal entity status and established credit history.
May face challenges as it is a relatively new concept, and lenders may perceive higher risk.
Loan accessibility is moderate, dependent on the LLP's financial standing and partners' creditworthiness.
Access to loans can be limited, relying heavily on the partners' personal creditworthiness.
Limited access to loans, typically tied to the proprietor's personal credit history.
Employee Stock Options (ESOPS)
Commonly used for employee incentives.
ESOPs are permitted.
ESOPs are allowed but less common.
ContentLimited use of ESOPs.
ESOPs are not applicable.
Compliance Requirements
More extensive compliance requirements.
Similar compliance requirements as a private company.
Lesser compliance requirements compared to a company.
Relatively fewer compliance requirements.
Minimal compliance requirements.
Income Tax Rates

For Domestic Companies:
Up to a turnover of INR 400 crore: 25%

Over INR 400 crore: 30% (plus applicable surcharge and cess)

For Foreign Companies: 40%(plus applicable surcharge and cess)

Taxed at the same rates as companies.
Taxed at a flat rate of 30% (plus applicable surcharge and cess)
Taxed at a flat rate of 30% (plus applicable surcharge and cess)
Taxed at individual income tax rates (applicable slab rates for individual taxpayers)
Transferability Of Ownership
Shares can be transferred.
Ownership transfer is restricted.
Ownership transfer is possible with the consent of partners.
Transfer of partnership interest requires consent.
Ownership is not transferable.
Conversion Process
Can convert to LLP or OPC, subject to approvals.
Can convert to a private company.
Can convert to a private company, and vice versa.
Can convert to an LLP or company.
Can be converted into a company or LLP.
Dissolution Process
Winding up involves complex legal processes.
Winding up can be initiated voluntarily or by the Tribunal.
Winding up can be voluntary or through the National Company Law Tribunal (NCLT).
Can be dissolved based on the partnership agreement.
Can be closed easily without complex legal procedures.