Title: 8 Things You Should Know About Limited Companies (LLC) In India (2)
18 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.
32. 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.
43. 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.
54. 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!
65. 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.
76. 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.
87. 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.
98. 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
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