How to create a llp company in india
How much does it cost to register a LLP in India?
Cost Involved for LLP Registration
| Step | Cost |
|---|---|
| Step 2 – DIN | Rs. 1000 for 2 partners |
| Step 3 – Name Reservation | Rs. 200 |
| Step 4 – Incorporation | Depends on capital contribution. Contribution up to Rs. 1 lakhs – Rs. 500, Contribution between Rs. 1 and 5 lakhs – Rs. 2000 |
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May 14, 2021
What is a LLP Company in India?
LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.
How much does it cost to form an LLP?
Register with your chosen state: To form an LLP, you must register with a state agency — usually the secretary of state’s office — and pay a filing fee, which varies by state. For example, in California, it costs $70 to register an LLP, plus a $15 service fee.
Is GST required for LLP?
GST Registration (For LLP/Partnership):-
GST Registration Regular Scheme is applicable on that person, which is Annual Turnover exceed 1.5cr. If turnover exceed 1.5 cr still normal scheme can be chosen. This taxpayers are filling return GSTR-3B Monthly or GSTR-1 Monthly basis.
Can husband and wife form LLP?
Husband and Wife LLP
Husband and wife can be designated partners in an LLP. There is a special agreement pertaining to tax liability that can be made so as to minimize the family tax liability. Besides, they can choose any of the above-mentioned types of LLP according to their convenience and need.
What are the disadvantages of an LLP?
Disadvantages of an LLP
- Public disclosure is the main disadvantage of an LLP.
- Income is personal income and is taxed accordingly.
- Profit can not be retained in the same way as a company limited by shares.
- An LLP must have at least two members.
- Residential addresses were historically recorded at Companies House.
Is LLP a good idea?
LLP is a rare combination of traditional partnership and a modern limited company and therefore, it offers conclusive benefits of the both the entities. However, like every coin has two sides, LLP registrations too have some disadvantages and hence in some cases, it cannot be said to be an ideal form of business.
Which is better LLP or Pvt Ltd company?
LLPs combine the operational advantages of a Company as well as the flexibility of Partnership Firms. The fee for incorporation of an LLP firm is very nominal as compared to that for Private Limited Company. The compliance requirements for an LLP are significantly lower than those for a private limited company.
Can we convert LLP to Pvt Ltd?
An LLP can be converted into a Pvt. Ltd. company as per the provisions contained in Section 366 of the Companies Act, 2013 and Company (Authorised to Register) Rules, 2014.
Is there any turnover limit for LLP?
The accounts of every LLP shall be audited in accordance with Rule 24 of LLP, Rules 2009. Such rules, inter-alia, provides that any LLP, whose turnover does not exceed, in any financial year, forty lakh rupees, or whose contribution does not exceed twenty five lakh rupees, is not required to get its accounts audited.
How does Pvt Ltd company works?
As the name suggests, a private limited company is a privately-held business entity. It is held by private stakeholders. The liability arrangement in a private limited company is that of a limited partnership, wherein the liability of a shareholder extends only up to the number of shares held by them.
Who is the owner of Pvt Ltd company?
In a Private Limited Company, the shareholders are the owners and directors are the managers. However, not all directors’ own shares, nor it is workable for every shareholder to run the company. Hence delegation of work among members and owners is important. So the directors are appointed to manage the company.
What are the benefits of Pvt Ltd company?
Advantages of Private Limited Company
- No Minimum Capital. No minimum capital is required to form a Private Limited Company.
- Separate Legal Entity.
- Limited Liability.
- Fund Raising.
- Free & Easy transfer of shares.
- Uninterrupted existence.
- FDI Allowed.
- Builds Credibility.
What is required for Pvt Ltd?
The prerequisites for the incorporation of a private limited company are that: The number of members must be between 2-200. There must be at least two directors and two shareholders. Each director must have a Directors Identification Number (DIN) PAN card copy of directors/shareholders.
How much is Pvt Ltd turnover?
There is a clause of mandatory conversion of OPC into private limited company in case the paid up capital exceeds Rs. 50 lakh and the average annual turnover (past three years) is more than Rs. 2 crore.
How many employees Pvt Ltd?
Now, there is no such requirement. A Private Limited Company is a Company which has a Minimum of Two members and a Maximum of 200 Members. To calculate members, present and past employees are excluded. A Private Limited Company can not invite general public to subscribe its securities.
Is audit compulsory for Pvt Ltd?
Yes it is compulsory for every company that is registered under the Companies Act, Private Limited Company or a Public Limited Company. Every company must get it audited every year. This is done within 30 days of the registration of the company.
Is GST audit compulsory?
Every GST registered taxable person whose turnover during a financial year exceeds the prescribed limit is subject to audit. As per the current notified GST Rules, the turnover limit is above Rs 2 crore^. Such businesses must get their books of accounts audited by a chartered accountant or a cost accountant.
Is Auditing compulsory?
As per section 44AB, following persons are compulsorily required to get their accounts audited : A person carrying on business, if his total sales, turnover or gross receipts (as the case may be) in business for the year exceed or exceeds Rs. 1 crore.
Which audit is compulsory by law?
Statutory Audit means an audit which is compulsory by any statute.
Do small companies need audited accounts?
Companies that qualify as small companies under Companies Act 2006 are usually exempt from audit, unless they are members of a group or are charities and required to follow the charity audit thresholds.