The business type one should follow for retail stores

That depends on what type of business you're starting, generally if the turnover is small and much funding is not required a proprietary business is good but in case of medium investment a partnership is better, however. only where there is huge funds required a private/public company is recommended. Further. the liability of the owner is equally important, the risk of personal liability is great in a proprietary business which covers his personal assets too, in case of partnership it is distributed among the partners and in companies the liability of the owner is restricted to his shareholdings. From taxation point the slab is fixed @ maximum rate i.e 30% for partnerships and companies, however, there are different slab rates for an individual proprietor.

Dear Dinesh,
 

As per the market scenario retail  is a long term prospect hence in the fitness of things start with Private Limited Company initially.

Best Regards

Daksh