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

1
8 Things You Should Know About limited Companies
(LLC) In India
2

1. 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, Whats 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, its 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
  dont have to show or highlight your own personal
  and filial assets to the partners and the
  Government. However, in case youre engaged in
  fraudulent, you have to!

6
5. Why Should You Go for It?

• If youre the owner of any LLP, it is without
  vagueness that youre 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 isnt able to be
  answered for another partners 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 its a Private Limited Company, and
  if the same is around Rs. 500,000, then its
  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 youre thinking big, you will need
  to register your company with the Companies Act,
  2013.
• You explore all the details here

10
Contact Us
We are always happy to make valuable new
contacts.
www.ahlawatassociates.com
admin_at_ahlawatasscociates.in
A-33, Lower Ground Floor, Defence Colony, New
Delhi 110024, India.
011-41023400