Major Benefits of LLP Registration in Mumbai

by WiseFilings Private Limited Be Wise, Be Compliant!

LLP or Limited Liability Partnership is a great for new businesses looking to get them registered. LLP is a wonderful concept introduced in India under the Limited Liability Act, 2008. There are plenty of reasons why start-ups choose to go for limited liability partnership registration for their business and we will cover some of them in this post.

1. Extra convenience

Companies offering online LLP registration in Mumbai say that LLP allows you extra convenience and you can manage your business like entrepreneurs. LLP agreements can be completely customized keeping the partners’ concerns in mind.

2. Fewer formalities

The fact there are not tons of legal formalities also makes it easier to get your firm registered as an LLP. If you compare it to online private limited company registration, you will realize that. Formalities such as legal compilation, resolution, annual meeting related formalities are way lesser in LLP.

3. No minimum capital needed

You can start your LLP firm with the minimum capital amount you have. As opposed to a private limited company or public company registration which require you to have Rs. 1 lakh and Rs. 5 lakh respectively as a mandatory requirement, you are not bound to have a certain amount of capital for LLP registration. In fact you capital can be an intangible asset such as land or machinery.

4. No maximum number of LLP partners

This one is self-explanatory. As an LLP firm you can have as many partners as you want varying from two to many. You need to be at least 2 partners to get your firm registered as LLP.

5. Low registration costs

LLP registration costs are pretty low as compared to any other company registration including private limited company registration. This is also one of the main reasons why online LLP registration is so popular amongst businesses.

6. Compulsory audit not needed

Unlike private or public registration, LLP firms do not need to get their accounts audited by an auditing firm unless the contributions of the establishment exceeds Rs. 25 lakhs or the annual turnover exceeds Rs. 40 lakhs.

7. Taxation

LLP firms are not liable to pay the tax on income and there is no dividend distribution tax payable as under section 40 (b). Commission, salary payments, and interest to partners are considered as deductions.

Hope you found the post useful. For more information related to registration of pvt ltd Company in Mumbai, feel free to get in touch with us.