GST works the same — the entity around it doesn’t
GST itself applies the same way to both: the same thresholds, the same returns, the same rates. What differs is everything around the GST — how the registration is held, who’s liable, and how much other compliance the structure carries. That “around it” is where the real difference in effort and cost sits.
Registration and identity
A proprietorship registers for GST on the proprietor’s own PAN — the business and the person are the same in law. A private limited company is a separate legal entity with its own PAN, and its GST registration sits on the company. That separation is the company’s main advantage: liability is limited to the company, not your personal assets.
Compliance load beyond GST
This is where the two diverge sharply:
- Proprietorship — GST returns and income tax; minimal other statutory filing. Simplest to run.
- Private limited — GST returns plus ROC/MCA annual filings, board formalities, statutory audit, director compliance, and DSCs. Much more to maintain.
- Cost — a proprietorship is cheaper to run; a company costs more in compliance but offers limited liability and easier fundraising/credibility.
Which to choose
If you’re a solo trader, freelancer or small shop, a proprietorship keeps things simple and cheap, and its GST is the most straightforward to manage. If you’re raising investment, have partners/shareholders, want limited liability, or need the credibility of a company, private limited is worth the extra compliance — just go in knowing the ongoing obligations.
We handle the GST either way
Whichever structure you pick, the GST registration and monthly filing work the same for us — ₹499 to register and ₹499/month to file. For a private limited company we can also point you to the additional compliance you’ll need. If you’re unsure which structure fits, tell us your plans and we’ll talk it through honestly.