Steps to incorporate LLP:
Name reservation: The first step to incorporate Limited liability partnership (LLP) is reservation of name of LLP. Applicant has to file eForm 1, for ascertaining availability and reservation of the name of a LLP business.
Incorporate LLP: After reserving a name, user has to file eForm 2 for incorporating a new Limited Liability Partnership (LLP). eForm 2 contains the details of LLP proposed to be incorporated, partners’/ designated partners’ details and consent of the partners/ designated partners to act as partners/ designated partners.
LLP Agreement: Execution of LLP Agreement is mandatory as per Section 23 of the Act. LLP Agreement is required to be filed with the registrar in eForm 3 within 30 days of incorporation of LLP.
Benefit of LLP – in the Contest of Tax Acharya team
The Partners of LLP are only liable for a small amount of debt incurred by it.
Separate Legal Entity
An LLP is a separate legal entity from the partners in it. It has an uninterrupted existence that follows perpetual succession
Transferring the ownership of an LLP is quite simple. A person can easily be appointed as a designated partner and the ownership switches to them.
Suitable For Small Business
LLPs having a capital amount less than ₹25 lakhs and turnover below ₹40 lakhs per year do not require any formal audits. This makes registering as an LLP beneficial for small businesses.
As the LLP are registered on MCA portals, the interested and potentials costumer can access the financials over MCA portal before getting transaction. Therefore provide better creditability
Section 8 Company
In India there are three type of NGOs structure, i.e., Trust, Society, Section 8 Company. The Trust & Society have no uniform law, vary state to state laws, But the Section 8 Company is centralised and uniform framework across the country, more creditability across world.
Section 8 Company is a company which
- Has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or such other object:
- Intends to apply its profits if any or other income in promoting its objects and
- Shareholders/ Members are not eligible for Dividend
- Cannot use suffix “ Private Limited”
Benefit of Section 8 Company Registration
Easy to get registration under 12AA & 80G of Income tax act for getting exemption from income tax & Donor also eligible for claim deduction.
No Need of Share Capital
More Creditablity as compared to Trust / Society