Convert your business to an LLP to take advantage of restricted liability and additional perks.
*Subject To Change On Market Conditions
Since there is just one person involved, a single proprietorship cannot be instantly changed into an LLP. Closing the proprietorship and starting over with an LLP registration are two options, as are adding a partner to the company before converting it to an LLP. It would be a new LLP Registration solely in any case.
To create an LLP, no minimum capital is necessary. no demand for a minimum capital contribution. Even a total capital contribution of Rs. 1000 is sufficient to register it.
No mandated audit is necessary for LLPs. Only when the company's turnover surpasses Rs. 40 lakhs and when the donation exceeds Rs. 25 lakhs is an audit necessary.
The introduction of a new Designated Partner makes it simple to transfer interest in an LLP. Changing a Designated Partner has no impact on the existence of the LLP because it is a distinct legal entity.
LLP benefits from Separate Legal Identity in the eyes of the law, which clearly establishes that the business's assets and liabilities are separate from those of the Partners.
It is also free from a number of taxes, including the minimum alternative tax and the tax on dividend distributions. Compared to a firm, a limited liability partnership pays less tax.
A person may be a Limited Liability Partnership's partner, employee, or creditor. With the same person in several capacities, there are various contracts.
An Indian address is required for a Limited Liability Partnership’s registered office. No document should be older than two months, including bank statements and utility bills. It is also necessary to produce a utility bill, a rent agreement or sale deed, and a No Objection Letter (NOC) from the landlord confirming permission to use the space as an LLP’s registered office.
