Choosing right structure of business is critical in view of
tax savings and legal compliance.Most of the new startups fails to address the
right type of registrations required.
The myth among most of the new startups is that private limited company
is the best form of business structure because of Branding concept , however
they fail to make cost benefit analysis before opting for the same.
A small business with turnover of Less than Rs.1,00,00,000
may opt for proprietor form of business due to its tax advantages under income
tax act and service tax law apart from other cost of compliance.
Brief comparison of costs
|
Point of comparison
|
Proprietor concern
|
Private Limited Company
|
|
Audit
|
Not Mandatory below tax audit
Limit
|
Mandatory
|
|
Tax Rates
|
Slab Rates - 10 % , 20 % , 30 %
|
Flat 30
|
|
Service TAX SSI Exemption
|
Available
|
Not Available
|
|
Audit Fee
|
Starting From Rs.20000.
|
Starting From Rs.35000.
|
|
Maintenance of accounts
|
Applicable only for Tax Audit Cases
|
Mandatory
|
|
Other Expenses Per Annum
|
Accountants Salary - Tax Audit cases - 180000
ROC Filing Fees - NA.
|
Rs. 180000.
ROC Filing Fees - 10000.
|
Still Private Limited company may be opted for Specific Business, Branding , Positive Benefits over Proprietor concern , Limited Liability.
We Provide Private Limited company Registration in chennai and other parts of the country. Contact us for More Details 9884999123 , www.mlcorporate.in contact@mlcorporate.in
