Harischander wants to start a manufacturing business but he is not able to decide on the form of business (Type of Business Entity). He seeks your advice about the legal implications and requirements for the various busi

Following are the Business Form-wise Features/Benefits or Drawbacks for the Parameters required by Harishchander: Parameters Proprietorship Partnership Limited Liability Partnership (LLP) Limited Liability Company Registration No formal registration required Registration is optional Has to be registered with the Ministry of Corporate Affairs under the LLP Act 2008 Has to be registered with the Ministry of Corporate Affairs under the Companies Act 2013 Member Liability Unlimited liability Unlimited liability Limited liability to the extent of contribution towards to the LLP Limited Liability to the extent of share capital Number of Members Required Can only have one person Minimum of two persons required to start a Partnership Minimum of two persons required to start a LLP Minimum of one person required to start a One Person Company (OPC) and two persons to start a Private Limited Company Taxation Taxed as individual, based on total income of proprietor Partnership profits are taxed as per the slabs provided under Income Tax Act, 1961 plus surcharge and cess as applicable LLP profits are taxed as per the slabs provided under Income Tax Act, 1961 plus surcharge and cess as applicable Profits of Private Limited Company are taxed as per the slabs provided under Income Tax Act, 1961 plus surcharge and cess as applicable Legal Status Not recognized as a separate entity and promoter is personally responsible for all liabilities Not recognized as a separate entity and promoters are personally responsible for all liabilities Is a separate legal entity. The promoters of the LLP are not personally liable towards the LLP Is a separate legal entity. The promoters of the company are not personally liable towards the company