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- In conclusion, LLP registration in India offers a balance of benefits and challenges. Its advantages include limited liability, separate legal entity status, and flexible management, while its disadvantages include limited capital contribution and audit requirements.
actaxindia.com › llp › llp-registration-advantages-disadvanatgesLLP Registration in India: Advantages & Disadvantages [Explained]
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What are the advantages and disadvantages of an LLP in India?
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Limited Liability Company Advantages and Disadvantages. The advantages and disadvantages of an LLC are discussed below: Advantages of Limited Liability Company. The benefits of a limited liability company are mentioned below. Liability; Since the company is a separate legal entity, the investors are protected against debts incurred by the ...
- 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 30, 2017 · 4 min read. December 30, 2017 By Urban Company. 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.
A private limited company in India is a popular business structure with advantages like limited liability for members, separate legal entity, perpetual existence, ease of raising funds, and credibility.
Jul 6, 2023 · Learn about limited liability, legal protection, shareholder requirements, and the pros and cons of PLCs. Gain insights to make informed decisions and successfully establish your company.” Introduction: In the realm of business, a Private Limited Company has always been a preferred choice among entrepreneurs, especially in India.
Oct 18, 2023 · Private limited companies and Limited Liability Partnerships (LLPs) are two common business structures in India. Pvt Ltd companies have been present longer and are well-recognized compared to LLPs. They have both advantages and disadvantages regarding registration, ownership, compliance, funding, and taxation.
Dec 20, 2023 · The most common forms of business structures are sole proprietorships, corporations, partnerships, and limited liability companies (LLCs). An LLC is a hybrid structure that combines the features ...
