Choosing best form of business structure - Private limited company registration or proprietor ship firm.

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