LimitedLiability Partnership (LLP) is an alternative corporate business form
that gives the company's limited liability advantages and the
flexibility of business partnership, in other words, by providing
simplicity in management and the possibility of such expansion, the
benefits of both worlds Does compliance requirements of a company are
relatively low and only some returns are filed. Audit for small LLPs
is not required and compliance is based on information declared by
the partners. A Limited Liability Partnership (LLP) is a new form of
business introduced in the year 2009, it is a unique form of this
type of business which means that it has the simplicity of a
partnership firm and limited liability There are advantages. The
minimum two persons can make an LLP, there is no maximum limit on the
number of its partners. The benefits of business louf form on Pvt Ltd
are in the fact that there is less compliance requirement than a
private limited company. For example, as long as the turnover of the
business does not reach up to 40 lakhs or audit is not required until
it reaches the capital. This is a preferred option for small
businesses with less than 25 lakhs of capital
Limited
Liability
Limited
Liability implies that the owners or shareholders of the company are
not personally liable to pay the business debts. They are only
responsible for the unpaid shares of the company. In order to reap
the Limited Liability Benefit, owner needs to comply with certain
corporate rules and regulations which includes keeping up with
paperwork and accurately capitalising the business.
Perpetual
Existence
Perpetual
Existence refers to the continuation of an incorporated firm’s
existence, which implies that these firms are unaffected by the death
of owner or the transfer of its shares to a new establishment. The
best part of perpetual existence is that a company will continue to
exist, no matter how many directors, officers and shareholders join
or leave
Capacity
to Sue & to be Sued
Private
Limited Companies enjoy the advantage to carry out legal proceedings
and to bring a suit in the court of law. Like an individual, the
companies can bring a legal action in another person’s name and
also can be sued in the court of the law as they are distinct &
independent legal entities different from its owners, promoters &
directors.. etc.
Distinct
Legal Entity
A
legal entity like a company has a separate identity from its owners
or shareholders. With the incorporation of the company according to
the law in force it becomes a distinct legal entity which is
different from its promoters and is treated separate under law.
Borrowing
Capacity
Not
only the private limited companies receive great financial assistance
from banks and financial institutions but also enjoys an advantage of
borrowing funds. A private limited company can also issue debentures
apart from accepting deposits from the public.
Owning
Property
Like
a person a private limited company can purchase, sale, own, possess,
enjoy and transfer property rights to anyone in its own name.
Moreover, no claim can be made upon the property of the company by
the shareholder as long as it exists.
LimitedLiability Partnership
firm (LLP)
is a new concept in firm registration where partners get limited
liability protection. This plan is designed to help you.please
call us on: 9371151733
/ 7798612243 for
more details
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