Proprietorship vs LLP vs Private Limited: Tax and Compliance Compared

Which business structure is best? Compare tax rates, compliance cost, funding and liability.

Proprietorship vs LLP vs Private Limited: Tax and Compliance Compared
In this article
  1. How to choose
ProprietorshipLLPPrivate Limited
TaxSlab rates30% + surcharge/cess22% (section 115BAA) + surcharge/cess, or 25% regime
LiabilityUnlimitedLimitedLimited
FundingDifficultLimitedBest for equity
ComplianceLowMediumHigh

How to choose

  • Testing an idea, low risk: proprietorship
  • Professionals/partners: LLP
  • Raising investment, ESOPs: private limited

Our business registration service helps you pick and register. Rates here are indicative; verify surcharge and conditions.

Need expert help with this?

Talk to the GstMan team. We will guide you step by step.

General information only; not professional advice. Rates, limits and due dates change. Verify with official sources or consult a professional. Reviewed October 2026. See our editorial policy.

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