There are a significant number of reasons why people across the globe are very much
interested in going for the limited liability partnership in comparison to the private limited
company or other available options. LLP formation is very much easy to be carried out in the whole process. And the best part is that it is comparatively free from the hassle in terms of day-to-day operations. The burden of compliance is also very much lower in this particular case which very well makes. Sure that people will be able to enjoy multiple benefits in the whole process. Some of the major benefits of depending on the LLP registration in India have been explain as follows:
No requirement of minimum contribution:
There is no chance of any kind of minimum capital requirement in the LLP. Because it can be formula with the help of the least possible capital without any kind of problem. The contribution of the partner can consist of movable or immovable proper. which is another very important benefit of the LLP.
No limit on the owner of the business:
Any kind of LLP will require a minimum Of two partners because there is no limit on the maximum number of partners. In contrast to the private limited company. There is a restriction of not having more than 200 members.
Lower cost of registration:
The cost of registration in the cases of LLP is very much lower in comparison to any other kind of Option. Including the public limited or the private limited company. The cost of the difference in the registration has come down in recent days. Which is the main reason that people need to be clear about different kinds of technicalities in this case so that ultimately, they will be able to save a lot of money.
No requirement for compulsory auditing:
Any kind of company, whether private or public irrespective of the share capital. Will be require to get the accounts audited. Which is the main reason that people need to be clear about the basic technicalities in this case so that compliance benefit will be present through out the process. The limit liability partnership in this particular case will be helpful in providing people with the opportunity of getting the taxation audit only if the contribution exceeds 25 lakhs or the annual turnover of the LLP exceeds 40 lakhs.
For income tax purposes LLP will be treat on par with the partnership firms because there is no chance. Of any kind of income tax or the share of the partners is not liable to the taxation in this case. There will be no chance of any kind of divide distribution tax in the whole process. And the provision of deem dividends under the income tax law will also not be applicable to the LLP.
Apart from the above-mention point going for the LLP company registration is consider to be a great idea for individuals. So that everyone can enjoy proper peace of mind along with affordability at every step.