Any LLP (Limited Liability Partnership) registered in India needs to be compliant under the rules and regulations as laid down by the Ministry of Corporate Affairs. Irrespective of whether it has done any business or not, in every financial year an LLP is required to file Annual Returns and Statement of Accounts.
Previously we spoke about the fundamental differences between a Pvt Ltd company and an LLP and the factors one needs to take before choosing the right entity for your business. Today we go 2in depth about the important reasons why one should register a Private Limited Company in India.
The most popular choice of corporate legal entity in the country, a private limited company is registered under the governance of the Companies Act, 2013 and the Companies Incorporation Rules, 2014. A minimum of 2 directors and 2 shareholders are needed to register a company under a private limited entity. A corporate legal entity can be a shareholder only while a natural person can be both a shareholder and a director. Read more
The first legal step towards starting a new startup venture is choosing the right entity for registering their business. Be it a Private Limited Company or a Limited Liability Partnership (LLP). Founders often find themselves stuck at making this kind of decisions as the right choice would determine the nature of the ownership and the management process. It would further set the tone of the various compliances that needs to be followed, be it LLP or Pvt Ltd.
The Startup India Project is an ambitious flagship initiative of the Government of India under our Prime Minister, Shri Narendra Modi. The whole purpose of this initiative is to empower startups and build a robust ecosystem by nurturing them to grow through innovation and design. This will, in turn, drive sustainable economic growth and bring in large-scale employment opportunities within the country.
“I see startups, technology, and innovation as exciting and effective instruments for India’s transformation.”
– Shri Narendra Modi, Prime Minister Of India
The project was first introduced by the prime minister on the 15th August 2015 while he was addressing the nation through his speech on the occasion of India’s 69th Independence Day. Read more