Whether Company or LLP by www.companiesinn.com
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Whether Company or LLP by www.companiesinn.com
- 1. Private Limited Company or Limited Liability Partnership (LLP)? CompaniesInn.com LLP BizKiosk @ Ahmedabad | Bangalore | Chennai |Delhi | Hyderabad | Mumbai | Kochi | Pune www.companiesinn.com
- 2. Limited Company or LLP? A. B. C. D. E. F. G. Requirements Administration and Compliance Taxation Accounts / Audit Requirements Statutory Corporate Filing Foreign Investments Few Thoughts © www.companiesinn.com
- 3. Limited Company or LLP? A. Requirements Minimum 2 Company Shareholders Minimum Capital `1 Lakhs Directors © www.companiesinn.com Minimum 2
- 4. Limited Company or LLP? A. Requirements Minimum 2 LLP Partners No Minimum Amount (Say `10000) Minimum 2 Designated Partners © www.companiesinn.com (One of them must be Resident in India)
- 5. Limited Company or LLP? B. Administration and Compliance As Per Companies Act Company Administration Compliance © www.companiesinn.com Various Records / Registers / Minutes of Meeting Mandatory Cost is relatively HIGH
- 6. Limited Company or LLP? B. Administration and Compliance As Per LLP Act & LLP Agreement LLP Administration Registers and Records are optional Compliance © www.companiesinn.com Cost is VERY LESS
- 7. Limited Company or LLP? C. Taxation NP = Income – Expenses Income Tax @ 32.44% on Net Profit Company Tax paid Profits lies with Company Profit can be distributed as Dividend ONLY Dividend Distribution Tax (DDT) @16.45% DIVIDEND IS TAX FREE © www.companiesinn.com Effective Total Tax @ 43.55%
- 8. Limited Company or LLP? C. Taxation NP = Income – Expenses Income Tax @ 30.90% on Net Profit LLP Partners can withdraw Tax Paid Profit at any time No Tax on Profit Distribution WITHDRAWAL OF PROFIT IS TAX FREE © www.companiesinn.com Tax paid Profits adds to Partners Accounts NET Income Tax @ 30.90%
- 9. Limited Company or LLP? C. Taxation COMPANY Vs. LLP Company COMPANY Profit `100 LLP © www.companiesinn.com LLP Profit `100 Income Tax `32.44 Income Tax `30.99 Profit after Tax `67.56 Profit after Tax `69.01 Dividend Dist. Tax on `67.56 `11.11 Dividend Dist. Tax `0.00 Net Dividend `56.44 Net Distribution `69.01
- 10. Limited Company or LLP? C. Taxation NP = Income – Expenses Income Tax @ 30.90% on Net Profit LLP Partners can withdraw Tax Paid Profit at any time No Tax on Profit Distribution WITHDRAWAL OF PROFIT IS TAX FREE © www.companiesinn.com Tax paid Profits adds to Partners Accounts NET Income Tax @ 30.90%
- 11. Limited Company or LLP? D. Accounts & Audit Accounts Company Audit by a CA © www.companiesinn.com All transactions to be recorded Prepare FINAL ACCOUNTS as on every 31st March Mandatory, Even if there is no BUSINESS
- 12. Limited Company or LLP? D. Accounts & Audit Accounts LLP Audit by a CA MANDATORY ONLY when Turnover / Contribution is MORE than `40L/ `25L © www.companiesinn.com All transactions to be recorded Prepare FINAL ACCOUNTS as on every 31st March Audit by a CA NOT REQUIRED when Turnover / Contribution is less than `40L/ `25L
- 13. Limited Company or LLP? E. Statutory Corporate Filings -YLY Annual Return Form 11 Company Registrar of Companies (ROC) Financial Statements Form 11 Income Tax Return Income Tax © www.companiesinn.com (Tax Audit ALSO required when turn over is more than `1Cr
- 14. Limited Company or LLP? E. Statutory Corporate Filings -YLY LLP Registrar of Companies (ROC) Annual Return (Certification by Company Secretary in certain cases) Directors Report + Audited Financial Statements Income Tax Return Income Tax © www.companiesinn.com (Tax Audit ALSO required when turn over is more than `1Cr
- 15. Limited Company or LLP? F. Foreign Direct Investment (FDI) FREE Automatic Route Company No Prior Permission required. ONLY Post Investment Reporting to RBI Foreign Investment Promotion Board (FIPB) Approval in certain cases © www.companiesinn.com Allowed in ALMOST ALL SECTORS Like IT/Engineering / Manufacturing /Services Defense / Retail etc & beyond the prescribed investment ceiling, if any
- 16. Limited Company or LLP? F. Foreign Direct Investment (FDI) LLP FDI ONLY WITH FIPB Approval NO FDI © www.companiesinn.com ALLOWED ONLY in sectors where Automatic Route approval allowed in case of Companies NOT ALLOWED in sectors where automatic route approval is not allowed
- 17. Limited Company or LLP? G. FEW THOUGHTS Why Popular? Company What? © www.companiesinn.com Exist Since 1956 Every one knows this format of business Limited Liability / Separate Legal entity / Perpetual Existence
- 18. Limited Company or LLP? G. FEW THOUGHTS When Started? LLP 20000+LLPs Registered in India (CompaniesInn have registered more than 1800 LLPs) What? © www.companiesinn.com From 2009 Limited Liability / Separate Legal entity / Perpetual Existence
- 19. Limited Company or LLP? H. VERDICT Company LLP Not Superior Not Inferior Good for ANY Business GOOD FOR ALL Business Any Limits? ‘Limited’ only in Name NO LIMITS – Not even in ‘NAME’ © www.companiesinn.com
- 20. Still Doubts? Mail info@companiesinn.com Call 1800 200 9935 OR Meet Us @ CompaniesInn.com LLP BizKiosk @ Ahmedabad | Bangalore | Chennai |Delhi | Hyderabad | Mumbai | Kochi | Pune www.companiesinn.com