Why should you start a Limited liability Partnership?

Below listed are some of the features of LLP Registration In Bangalore’s organizations. However an entrepreneur should choose the entity based upon his or her requirements and choose suits them best in the future.

Minimum Capital

To consolidate a private limited company, the investors need to make ventures at least Rs 1 lakh into the organization. This is not applicable for an LLP. An LLP can be fused with a capital of Rs 1 or above.

Limited Liability

One among the key features of starting a Private Limited Company is limited liability. Limited liability means limited exposure to financial risk by shareholders of a company. Limited liability means the investor’s liability in the company is restricted to the capital amount committed to the company.

For instance, if Sam invested Rs 50, 000 to begina private limited company. The liability is his investment of Rs 100, 000. As such, his would potential be able to misfortune can't be beyond Rs 50, 500. He will not beliable for any liability.

Another essential componentof theLLP is that the act of 1 partner does not affect the other partner. For instance of one partner acquired some cash in the name of the LLP registration without the knowledge of the other partner, the other partners can't be held obligated.

Transfer and Exits

An associate of an LLP can resign and allocate his profit sharing to another person and quit the LLP. Exit paper forms can be completed by way of executing a simple supplementary agreement.

Legal Compliance

Limited companies need to hold board conference 4 times a 12 monthsat least one time in every quarter. This also must hold gross annual general meeting and maintain minutes for such conferences. An LLP would not have to adhere to such compliance unless and normally specified in the LLP Agreement.

Income Tax

LLPs don't have Dividend Distribution Tax (DDT) while Companies are obligated to pay DDT @16.609% (comprehensive of additional charge and education cess) on profits paid to the investors.

Both LLP and organizations are taxed at 30% plus education cess and advanced schooling cess.

Audit

LLP needs to find and get its documents audited only if the LLP's turnover exceeds Rs. 40 Lacs or the capital contribution is more than Rs 25 Lakhs any financial year.

Yet there are also factors an entrepreneur should consider such a size and nature of business pay for raising, scale etc before choosing the type of business entity.

Suggested Keywords: Register A Start-up Company In Bangalore, Company registration, LLP Registration, Private Limited company registration, Partnership firm registration. 

5 Reasons to start a Private Limited Company in Bangalore

So why should you start a private limited company. Here are few of the advantages of Registering your business as a private limited company in Bangalore.

Limited Liability

One of the main advantages of starting a private limited company is limited liability. Limited liability means limited exposure to financial risk by investors of a company. Limited liability means the shareholders liability in the company is limited to the capital amount invested in the company.

For example, if Sam invested Rs 100,000 to start a private limited company. Sam’s liability is the investment of Rs 100,000. In other words, the potential loss cannot be beyond Rs 100,000. Sam won’t be liable for any liability beyond this Rs 100,000.

Business Continuity

Private companies enjoy perpetual succession. What does perpetual succession mean? Shareholders may come and go, but the company still continues to be in existence. The company is unaffected by the death of any of its shareholders or the transfer of its shares to another person.

For example, in a partnership firm, a change in the membership leads to dissolution of the existing partnership whereas in a private limited company, one shareholder may transfer his shares to another, but the company still continues to operate.

Fund Raising

Financial institutions such as banks and private equity funds lend their resources more willingly to companies that to other forms of business organizations.

Banks are more likely to lend to limited companies because they can use the assets of the company as security for the loan. Private equity firms take stake in the company while investing; this cannot be achieved in a partnership firm.

Transfer and Exits

Limited companies are easier to sell as compared to partnership firms. Ownership is represented by equity or preference shares and these can be easily sold without affecting the activities of the company.

Salaries to directors

There is no maximum limit on the salary being paid to directors; whereas there is a ceiling limit on the salary paid to partners of a partnership firm as per Income Tax Act, 1961.

Reference Link : http://www.indiastartup.in/why-should-you-start-a-private-limited-company

GST Registration Procedure in India

Every person who is liable to registered under GST Act shall apply for registration. The person will register in every such state in which he is so liable. The time limit to register is within thirty days from the date on which he becomes liable. The person can get voluntarily registration thought not liable to registered. All provisions of this Act are applicable as to registered taxable person.

Here, we will talk about GST Company registration procedure in detail like time limit, persons eligible, documents required, background process, structure of registration number, GST registration form etc.

REGISTRATION FOR GST :

• The vendor and customer GST Company registration numbers will be mandatory for availing or passing the credits, and reporting purpose.

• Aggregate turnover requirement for GST registration is as below:

Aggregate Turnover
Region	Liability to Register	Liability for Payment of GST
North East India	Rs 9 Lakhs	Rs 10 Lakhs
Rest of India	Rs 19 Lakhs	Rs 20 Lakhs

However, certain categories of persons mentioned in Schedule III of MGL are liable to be registered irrespective of this threshold.

• An agriculturist shall not be considered as a taxable person and shall not be liable to take registration. (As per section 9 (1)).

• Any person should take a Registration, within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed.

• Every person who is liable to take a Registration will have to get company registered separately for each of the States where he has a business operation and is liable to pay GST in terms of Sub-section (1) of Section 19 of Model GST Law.

• GSTN shall migrate all such assesses /dealers to the GSTN network and shall issue GSTIN number and password. They will be asked to submit all requisite documents and information required for registration in a prescribed period of time. Failure to do so will result in cancellation of GSTIN number.

• Taxpayers would have the option to sign the submitted application using valid digital signatures (if the applicant is required to obtain DSC under any other prevalent law then he will have to submit his registration application using the same). For those who do not have a Digital signature, alternative mechanisms will be provided in the GST Rules on Company Registration.

• If the information and the uploaded documents are found in order, the State and the Central authorities shall approve the application and communicate the approval to the common portal within three common working days. The portal will then automatically generate the Registration Certificate.

• In case registration is granted, applicant can download the Company Registration Certificate from the GST common portal.

• Structure of Registration Number is as follows:

15 digits in GST no. will denote as below
State Code	PAN	Entity Code	Left Blank	Check Digit
1-2	3-12	13	14	15

DOCUMENTS REQUIRED FOR GST REGISTRATION:

• Provisional ID & password, in case of existing applicants (Collect from VAT department or any other concerned authority)

• Valid E-mail ID and Mobile No. of Applicant.

• PAN card of the Company/ LLP (PAN is not mandatory for a non-resident taxable person who may be granted registration on the basis of any other document as may be prescribed.)

• Proof of constitution, in case of LLP or Partnership Firm partnership deed, In case of company certificate of incorporation.

• AOA & MOA in case of company.

• Letter of authorization or copy of resolution of Board of Directors to the effect empowering the person to apply for GST.

• Details and proof of place of business like rent agreement or electricity bill. Photograph, proof of appointment, of Authorized signatory, promoter, partner etc.

• Cancelled cheque of your bank account showing name of account holder, MICR code, IFSC code and bank branch details.

• Authorized signatory like List of partners with their identity and address proof in case of partnership firm or List of directors with their identity and address proof in case of company.

• Opening page of passbook/statement containing the following information:

1. Bank account number

2. Address of branch

3. Address of account holder

4. Few transaction details

GST REGISTRATION PROCESS IS AS UNDER FOR NEW APPLICANTS (Source GSTN):

1. The applicant will need to submit his PAN, mobile number and email address in Part-A of Form GST REG–01 on the GSTN portal (www.gst.gov.in) or through Facilitation centre (notified by board or commissioner).

2. The PAN is verified on the GST Portal. Mobile number and E-mail address are verified with a one-time password (OTP). Once the verification is complete, applicant will receive an application reference number on the registered mobile number and via E-mail. An acknowledgement should be issued to the applicant in FORM GST REG-02 electronically.

3. Applicant needs to fill Part- B of Form GST REG-01 and specify the application reference number. Then the form can be submitted after attaching required documents.

4. If additional information is required, Form GST REG-03 will be issued. Applicant needs to respond in Form GST REG-04 with required information within 7 working days from the date of receipt of Form GST REG-03.

5. If you have provided all required information via Form GST REG-01 or Form GST REG-04, the registration certificate in Form GST REG –06 for the principal place of business as well as for every additional place of business will be issued to the applicant.

6. If the person has multiple business verticals within a state he can file a separate application for the registration in Form GST REG-01 for each business verticals.

7. If the details submitted are not satisfactory, the registration application is rejected using Form GST REG-05.The applicant who is required to deduct TDS or collect TCS shall submit an application in Form GST REG – 07 for registration.

8. If he is no longer liable to deduct or collect tax at source then the officer may cancel and communicate the cancel of registration.

GST REGISTRATION PROCESS IS AS UNDER FOR EXISTING APPLICANTS (Source GSTN):

Existing Applicants:

The dealers registered with central or state tax authorities would be migrated to GST by default and allotted Goods and Service Tax Identification Number (GSTIN). Existing applicant’s means any entity registered with any of the following authorities:

1. Central Excise

2. Service Tax

3. VAT

4. Entry/luxury/entertainment Tax

India Startup is the one stop solution for Private Limited Company Registration, LLP Registration and Partnership firm registration in Bangalore. We will help you take your first step in becoming an entrepreneur. India startup provides legal solutions starting from company registration, accounting, preparing legal documents, business connections, trademark, advisory services, thereby providing end to end solutions in the life cycle of a business venture.

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Reference Article : http://www.indiastartup.in/gst-registration-procedure-india/