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- An Indian LLC, or Limited Liability Company, is a popular option for Westerners wishing to own 100% of a South Asian business. The Companies Act 2013 governs LLC creation, dissolution, and permissible commercial activity. India does not have a Limited Liability Company Law.
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May 29, 2023 · An LLC provides several advantages, including limited liability protection, ease of formation, and flexibility in management. In this blog post, we will delve into the process of registering an LLC in India in 2023, highlighting the key steps and requirements.
LLC or limited liability company is a business based on the characteristics of a partnership, a sole proprietorship, and a corporation. The limited liability feature of the company is akin to a corporation, while the flow-through taxation feature is characteristic of a partnership.
- Penalty For Non-Compliance
- Inability to Have Equity Investment
- Higher Income Tax Rate
Even if an LLP does not have any activity, it is required to file an income tax return and MCA annual return each year. In case an LLP fails to file Form 8 or Form 11 (LLP Annual Filing), a penalty of Rs.100 per day, per form is applicable. There is no cap on the penalty and it could run into lakhs if an LLP has not filed its annual return for a fe...
An LLP does not have the concept of equity or shareholding like a company. Hence, angel investors, HNIs, venture capital and private equity funds cannot invest in an LLP as shareholders. Thus, most LLPs would have to rely on funding from promoters and debt funding.
The incometax rate for a companywith a turnover of upto Rs.250 crores is 25%. (Further reduced in 2019 for new companies involved in manufacturing). However, LLPs are taxed at a 30% rate irrespective of the turnover. Know more about LLP income tax rate.
Dec 12, 2022 · The advantages of owning a company that has a limited liability: Reduced financial risk: One of the biggest advantages of limited liability for owners, is that it reduces financial risk. For instance, you can’t hold the owners liable if a company faces losses or cannot repay a loan.
An Indian LLC, or Limited Liability Company, is a popular option for Westerners wishing to own 100% of a South Asian business. The Companies Act 2013 governs LLC creation, dissolution, and permissible commercial activity. India does not have a Limited Liability Company Law.
Dec 30, 2017 · There are three types of limited liability companies (or LLC) in India, One Person Company (OPC), a private limited company and a public limited company. The word LLC is usually not used in India as it is more of an American term.
Limited liability company registration services are widely available in India as company formation is a big hit among Indian entrepreneurs. New Companies Act, 2013 has defined all rules and regulations regarding incorporating and registering all limited liability companies.
