8 Things You Should Know About Limited Companies (LLC) In India

1. 8 Things You Should Know About limited Companies (LLC) In India

2. How can the company be formed? • The Legal plan of action for setting up a LLP is also free of inconvenience. You Should have to decide on the partners with the mode of business and sign the message (Memorandum) as well as the Articles of Association and submit the Registrar the same along with the prescribed fees. Then the Registrar shall follow up with the proceedings and you just have to follow the instructions.

3. 2. And, What’s the Main Advantage of the LLP? • The main advantage of a LLP Company remains that its formation of cost is much lower than any other form of business (LLC company) ventures, and comes with much less institutional requirements. Besides, especially in case of small scale enterprises, it’s very easy to operate, manage and even land up.

4. 3. Is Audit Necessary for the Accounts? • Well, it is required only if your annual turnover be greater than 40 lakhs, or if the individual contribution exceeds 25 lakhs. If none is the case, A LLP company should maintain a proper annual account that is accessible to all the partners.

5. 4. What are the Rights of the Partners? • Even though the main duties of the partners are provided by the house of Law, the rights, duties and other obligations of the partners actually work as per the agreement set between them. • However, the most important thing about LLP is that the liability of the partners is restricted to his/her contribution in LLP. This means that if you own an LLP with any friend of yours, you don’t have to show or highlight your own personal and filial assets to the partners and the Government. However, in case you’re engaged in fraudulent, you have to!

6. 5. Why Should You Go for It? • If you’re the owner of any LLP, it is without vagueness that you’re the owner, and not any mere shareholders who cannot participate in the management of the company. • Even though there has to be a minimum of two partners involved, with no “maximum” requirements, each partner isn’t able to be answered for another partner’s faults and negligence.

7. 6. How Many Types of LLP Companies can be there? • If you are planning for opening a LLP Business set out, the first question you should have to face will be whether your business set up should be a Private Limited Company or a Public Limited Company. • This is, however, adjudged by the minimum capital requirement for the same. If your Authorised Share Capital is less than or equal to Rs. 100,000, then it’s a Private Limited Company, and if the same is around Rs. 500,000, then it’s adjudged under the Public Limited Companies.

8. 7. What are Limited Liability Companies? • A Limited Liability Company (LLC) is one where the points of corporate structure are blended into those of a partnership company. • Being a “limited liability” enterprise means that the company is a separate legal entity from its owners and can own assets in its own name, and not in the name of the owners. And, in case of any legal discrepancies, it has the right to sue or to be sued.

9. 8. LLP Act • Along India, LLCs were available in the whole wide world. However, in India, they became legal on 1st April, 2009 when the Indian Government formulated the Limited Liability Partnership Act. • However, this Act is applicable to small firms too. And, if you’re thinking big, you will need to register your company with the Companies Act, 2013. • You explore all the details here

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