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.
