LLP Company Advantages over the Private Limited Company in India
Also called as Limited Liability Company (LLC) in many other countries, the Limited Liability Partnership (LLP) company possesses certain highly impressive advantages over the private limited company. This short but rich blog expounds the limited liability partnership benefits over private limited company in India, along with informing our masterly and swift services for llp registration anywhere in entire India , Here, it may also be noted that our delhi-based law firm is one of the hugely famous, popular, and internationally reputed law firms of India for company and business related services to Indian and international people.The most outstanding llp company advantages over the private limited companies in india, are the following:
- For forming an LLP company in India, there are required at least one designated partner and one more partner; in the case of private limited company, there should be at least two directors and two shareholders.
- In LLP, there is no limit to the maximum number of partners; in case of a private limited company, this limit is set at 200.
- There is no recommendation regarding the minimum paid-up share capital for forming a limited liability partnership company in India; in case of private limited company, this amount is kept as Rs.-One Lac.
- The cost of registering an LLP is lower than that of incorporating a private limited company in India.
- The administration and operations management of LLP are quite flexible and are carried out as per the LLP Agreement.
- LLP companies have lesser mandatory annual compliances than that of the private limited companies
- In case of LLP, the Dividend Distribution Tax (DDT) is not applicable; and therefore, partners of the LLP can easily share the profits without paying any tax.
Posted by Anita Aswal - 30th April 15