Limited Liability Partnership Firm has been considered one of the popular forms of registration in India since its first introduction in 2008. The main reason for choosing the LLP firm is that it is the combinations of both Private Limited Company and Partnership Firm, Here are the key features of LLP registration in India signify.
- Convenience form of Business
LLP is one of the easiest and convenient forms of business in India. It is easy to incorporate, and easy to manage, also the agreements of LLP are personalized to meet the needs of partners and objective of company.
- No mandatory capital requirement
LLP in India can be started off with the least amount of capital money which can be in the tangible and intangible form.
- No limit for maximum number of owners
There is no maximum limit of a partner in LLP. An LLP requires minimum of 2 partners (atleast one should be resident of India) during its lifetime but there is no such limit for maximum limit of the partners in a company.
- Lowest cost for registration in India
The cost to incorporate an LLP in India is lower than Private Limited Company, Public Limited Company, One Person Company (OPC) , partnership firm and proprietorship firm.
- No compulsory audit requirement.
LLP form of companies is not required to compulsorily audit their accounts. LLP required to get audit their accounts either when the contribution in LLP exceeds Rs 25 Lakhs or when annual turnover of LLP exceeds Rs 40 Lakhs or both.
- Lesser compliances filling services.
The minimum requirement of compliances for LLP is Annual return filing and statement of accounts and solvency which is lesser than that of private limited company, Public Limited Company, OPC, and partnership firms.
- Reduction in tax liability of Partnership
LLP in India does not required to pay dividend distribution tax or any tax on income and share of its designated partners as compare to private limited company, partnership firm and OPC.
