Several people across the globe are very much interested to launch the LLP due to the multiple benefits associated with it and the best one is that it is easy in terms of setting up and is comparatively less hassle-free in comparison to other available options. The compliance burden in this particular case is also been minimum even if there is minimal activity in the whole process. Following are some of the very basic benefits of depending on the LLP company registration with the help of experts in the industry:
No requirement of minimum contribution:
Since there is no chance of any kind of minimum contribution in the cases of LLP, it can be formulated with the help of the least possible capital without any kind of problem. The contribution of the partner can consist of movable, immovable, tangible or intangible property which will be helpful in providing people with multiple benefits.
No limit on the number of owners:
LLP will always require a minimum of two partners at the time of setting up the business but there will be no chance of any kind of a maximum number of partners in this particular case. In contrast to the private limited company, this is considered to be a good idea because in the case of private limited companies there is a restriction of 200 members.
Very low cost of registration:
Another very important advantage of depending on the LLP registration is the low cost associated with it which will be helpful in making sure that incorporation of the things will be carried out very efficiently and further, there is no chance of any kind of problem. The registration cost associated with this particular scenario is very much genuine which makes it sure that people can definitely enjoy multiple cost-efficient benefits.
No requirement for compulsory audit:
Several companies across the globe have to undertake compulsory audit systems and get their accounts checked by professionals. But on the other hand, in the cases of limited liability partnership, there is no such scenario of mandatory requirement and has to be only undertaken if the contribution of the partner is exceeding Rs.25 lakhs or the annual turnover of the LLP will be exceeding Rs.40 lakhs.
Genuine taxation aspect:
For the income tax purpose there is no chance of any kind of issues with the taxation aspect because the LLP income will be liable for normal income tax and the share of the partner will never be liable to the income tax. Apart from this, there is no chance of any kind of dividend distribution tax action system in this case which justifies that people will be definitely able to enjoy multiple directions which is another very much important factor in this particular scenario.
Hence, preferring the element of LLP formation in comparison to other available options in the industry is considered to be a good idea so that people will be able to remain highly aware of the benefits and further will be able to make well-educated decisions.