Reasons Why Limited Liability Partnership Registration is Essential

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There are many people in India who start their business firm as a partnership firm. Keeping partnership firm in the consideration, Limited liability partnership firm was introduced in the year 2008. Limited Liability Partnership is the integration of private limited company and partnership as well. This type of business needs at least two people to start a business. There are plenty of benefits associated with the limited liability partnership firm and so a number of people are starting up their business as limited liability partnership firm nowadays. Before starting a limited liability partnership firm, you should be aware how it is beneficial and can help you to make lots of profits in your business. So, this blog discusses the essential reasons why limited liability partnership registration in India is essential.

Here are some of the top reasons that state why limited liability partnership registration India is essential:

  • Very less liability: As the name indicates, limited liability partnership is helpful in limiting the liability. Because this type of firm may have multiple owners, so if any risk is found, it gets spread out to everyone and does not make a single person responsible for getting rid of that risk.
  • No restriction on a number of owners: It requires a minimum of 2 partners to start the business, but there is no as such restriction on the number of partners. In a private limited company, you cannot have more than 200 members in total, whereas in limited liability partnership firm, you can have as many members as you want.

Read More: Procedure of the Partnership Registration India

  • Less registration cost: Comparing the cost of the private limited company or public limited company to LLP, LLP has much lower registration cost. This is the reason that partnership registration India is great in demand these days.
  • The audit is not necessary: Whether it is a private limited firm or a public limited firm, there is a need to audit their financial accounts, whereas accounts of the limited liability partnership firm never to get audited. It is only required to audit the accounts of LLP if either contribution amount goes beyond Rs. 25lakhs or annual turnover of firm exceeds than Rs. 40lakhs.
  • Flexibility: Flexibility is the main factor that draws everyone’s attention towards the limited liability partnership firm because it offers a great flexibility to the partners of LLP. Partners are allowed to contribute the amount they want and it is the wish of a partner that how they want to contribute to the business. They are not at all compelled to attend any business meetings or events if they don’t feel like attending them.
  • Taxation benefits: Taxation is also one of the considerable factors if you plan to start an LLP firm. These firms are charged taxes at much lower rates as compared to other types of business entities. Furthermore, there is no such policy of Dividend Distribution Tax; therefore, no tax is imposed while you share out profits to your partners.

If you really wish to do partnership registration in India, then LexOracle can help you to get your LLP firm registered as quickly as possible.

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