Firm V/s Company-Taxation & Compliance

Registration of a business as a Firm or a Company is as important as developing the right product or service that can cater to the needs of business and deliver growth in years to come. In the world of business, the two terms - firm and company, are often used interchangeably but this choice can become a grave concern for start-ups. Forming a start-up often requires having realistic approach towards the difference in the meanings, nature and characteristics of firms or companies. Start-ups often begin with limited resources and so each task completed and decision executed should be carefully planned out.

In this article, we will understand the key differences between a firm and a company from the point of its taxation and compliance requirements.

The below table and its information can be helpful in taking the right decision regarding choosing the right business structure for a start-up or a business: