- Proprietory
This kind of structure is very simple. Owner of the company is proprietor and can act as per
his own wish. Opening of such a concern is just easy. U have to think of a name of the concern and open a bank account.
Your company is ready and u can start business from day one. usually for .com /start ups this structure is not suitable as team is the essense here and VCs/Incubators do not prefer/fund proprietory concern.
There is no governing law for such kind of concern and considered unorganised.
Tax rate is as applicable to individuals.
- Partnership
Here , Indian Partnership Act 1932 is the governing Act.Two or more
partners can come togather and form a partnership concern.
Firm is not independent of its partner. So liablity
of firm/partners is unlimited.
Partnership firm is somewhat considered as organised , but financiers do not prefer such structure too. This is good for family managed small companies.
Tax rate is 35% plus 10 % surcharge.
- Private Limited Company
Ideal kind of structure for start up entreprenuers.Indian Companies Act 1956 is governing such companies.Company is indepnendent entity and
saperate from its promoters /directors.Liabiliy of members is limited.Change of ownership is easy . Financiers also prefer this kind of structure.
Private limited companies enjoy certain benefits under the Companies Act too.
Tax rate is 35% plus 10 % surcharge.
- Public Limited Company
If the members of the company is exceeding 50 or company needs to accept deposit from public or company is planning IPO, public limited company structure is a must. All stock exchange listed companies are Public limited companies.Tax rate is same as private limited companies.
