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Jul 17, 2023 · The following are advantages of incorporating an LLP in India: No requirement of minimum contribution. There is no minimum capital requirement in LLP. An LLP can be formed with the least possible capital. Moreover, the contribution of a partner can consist of tangible, movable or immovable or intangible property or other benefits to the LLP.
Mar 27, 2023 · A Limited Liability Partnership (LLP) is a hybrid business structure in India that combines elements of a partnership and a private limited company. It is governed by the Limited Liability Partnership Act, 2008. Here are some pros and cons of an LLP in India:
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What are the pros and cons of an LLP in India?
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What are the advantages of incorporating an LLP in India?
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- Brief Overview. What is a Limited Liability Partnership (LLP)? An LLP is a form of business organization that has become popular among entrepreneurs as it gives the benefits of a private limited company (such as limited liability and separate legal entity) along with flexibility offered by a traditional partnership firm.
- Taxation of LLP. An LLP is taxed in the same way as a traditional partnership firm subject to certain exceptions like the benefit of presumptive taxation under section 44AD or section 44ADA of Income-tax Act, 1961 (“Income-tax Act”) is not applicable for LLP but applies to a partnership firm.
- Advantages of LLP. i) Separate Legal Entity: It means that in the eyes of law, LLP is separate from its partners just like a company is separate from its shareholders.
- Disadvantages of LLP. i) Public Disclosure: Public disclosure is the main disadvantage of an LLP. The documents filed through the MCA portal are public documents.
Apr 16, 2024 · Pros: 1. Credibility: Private Limited companies are often perceived as more credible and trustworthy, which can aid in attracting investors and customers. 2. Easy...
Aug 10, 2023 · 1. Limited Liability. One of the significant advantages of LLP registration is limited liability. Partners are shielded from personal liability for the firm’s debts and losses. 2. Separate Legal Entity. LLP enjoys the status of a separate legal entity, enabling it to own assets, enter contracts, and sue or be sued in its name. 3.
Jan 25, 2023 · January 25, 2023. Introduction. Limited Liability Partnership (LLP) is a business structure that combines the benefits of a partnership firm and a company. LLP is a separate legal entity from its partners, meaning that the partners are not personally liable for the debts of the LLP.
