The simplest business structure owned and managed by a single individual.
| Document | Description |
|---|---|
| PAN (Permanent Account Number) | Proprietor’s personal PAN is used for business as well as income tax purposes. |
| Shop Act License (Gumasta License) | Mandatory for any commercial establishment under local municipal laws. Required to open a business current account. |
| MSME / UDYAM Registration | Optional but recommended. Enables access to government schemes, subsidies, and loan benefits. |
| Bank Current Account | Should be in the name of the business. Requires PAN, Shop Act License, and address proof. |
| Other Licenses | FSSAI, Import Export Code, GST Registration, Professional Tax, etc as per nature of business. |
| Applicability | Income > ₹2.5L |
| Due Dates | 31st July / 31st Oct |
| ITR Forms | ITR-4 or ITR-3 |
| Mandatory When | Income > ₹2.5L (Profession) Turnover > ₹10L (Business) |
| Registration Threshold | ₹20L (Services) ₹40L (Goods) |
| Key Returns | GSTR-1, GSTR-3B, GSTR-9 |
| Turnover > ₹1Cr | Mandatory Audit |
| Turnover ≤ ₹10Cr | Cash ≤5% exemption |
Business structure governed by Indian Partnership Act, 1932.
| Requirement | Description |
|---|---|
| PAN Card | Separate PAN required for the firm (different from proprietorship) |
| Partnership Deed | Legal document on stamp paper outlining rights, duties and profit-sharing ratios (notarized) |
| Registrar of Firms |
|
| Physical Submission |
|
| Shop Act License | Mandatory for commercial establishments (local municipal authority) |
| MSME/UDYAM | Recommended for government schemes and subsidies |
| Bank Account | Requires PAN, Deed, and Shop Act License |
| Applicability | Income > ₹2.5L |
| Due Dates | 31st July / 31st Oct |
| ITR Forms | ITR-5 |
| Mandatory When | Income > ₹2.5L (Profession) Turnover > ₹10L (Business) |
| Registration Threshold | ₹20L (Services) ₹40L (Goods) |
| Key Returns | GSTR-1, GSTR-3B, GSTR-9 |
| Turnover > ₹1Cr | Mandatory Audit |
| Turnover ≤ ₹10Cr | Cash ≤5% exemption |
A flexible business structure combining partnership benefits with limited liability, governed by LLP Act 2008.
| Requirement | Description |
|---|---|
| Minimum Partners | 2 Partners (Individuals/Companies) |
| Designated Partners | 2 Individual DPs (1 Resident Indian) |
| Capital Requirement | No minimum capital required |
| Step | Process |
|---|---|
| Step 1 | Obtain Digital Signature (DSC) |
| Step 2 | Apply for DPIN |
| Step 3 | Name Reservation (RUN-LLP) |
| Step 4 | File FiLLiP with ROC |
| Step 5 | Submit LLP Agreement (Form 3) |
| Step 6 | Apply for PAN/TAN |
| Step 7 | Open current bank account |
| Form | Description | Due Date |
|---|---|---|
| Form 11 | Annual Return | 30th May |
| DIR-3 KYC | DIN KYC | 30th September |
| Form 8 | Accounts & Solvency | 30th October |
| Particulars | Details |
|---|---|
| ITR Form | ITR-5 |
| Tax Rate | 30% + Surcharge + Cess |
| Due Dates | 31st July (Non-Audit) 31st October (Audit) |
| Registration Threshold | ₹20L (Services) ₹40L (Goods) |
| Key Returns | GSTR-1, GSTR-3B, GSTR-9 |
| Mandatory When | Income > ₹2.5L (Profession) Turnover > ₹10L (Business) |
The most preferred structure for startups offering limited liability and fundraising capabilities, governed by the Companies Act 2013.
| Feature | Description |
|---|---|
| Directors | Minimum 2 (1 Resident Indian) |
| Shareholders | Minimum 2 (Max 200) |
| Liability | Limited to share capital |
| Legal Status | Separate legal entity |
| Step | Process |
|---|---|
| Step 1 | Obtain DSC for Directors |
| Step 2 | Apply for DIN |
| Step 3 | Name Reservation (SPICe+) |
| Step 4 | File Incorporation Forms |
| Step 5 | Receive COI + PAN/TAN |
| Requirement | Details |
|---|---|
| Bank Account | Mandatory within 30 days |
| GST Registration | If turnover exceeds limits |
| MSME Registration | Recommended for benefits |
| Compliance | Form | Due Date |
|---|---|---|
| Financial Statements | AOC-4 | 30 days post AGM |
| Annual Return | MGT-7 | 60 days post AGM |
| AGM | - | Within 6 months of FY end |
| ITR Filing | ITR-6 | 31st October |
A hybrid structure for solo entrepreneurs offering corporate benefits with single ownership, governed by Companies Act 2013.
| Feature | Description |
|---|---|
| Ownership | Single Shareholder (Indian Resident) |
| Nominee | Mandatory Nominee Required |
| Conversion | Mandatory if turnover > ₹2Cr or capital > ₹50L |
| Liability | Limited to Investment |
| Step | Process |
|---|---|
| Step 1 | Obtain DSC & DIN |
| Step 2 | Name Reservation (SPICe+) |
| Step 3 | File Incorporation Documents |
| Step 4 | Submit Nominee Consent (INC-3) |
| Step 5 | Receive COI + PAN/TAN |
| Compliance | Form | Due Date |
|---|---|---|
| Accounts Maintenance | Mandatory | - |
| Annual Return | MGT-7A | Within 60 days of AGM |
| Financial Statements | AOC-4 | Within 30 days of AGM |
| AGM | Not Applicable | |
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