Awesome! You have a great plan for a startup, you’ve driven business, and have a team that backs you and are raring to go. But, wait! Have you thought about what type or category of company you fill the form? How many directors or partners? What amount of capital you are decide to dispose of? What way will the company take? No? Well, with this article we hope to clear that up for your new company.
We are going to examine at LLPs(Limited Liability Partnerships) of their merits and try to articulate the point that LLP is better than Private Limited Company. Before we see PLCs in a bad picture and LLPs as the best choice, there are more upsides to Private Limited company incorporation as well as similarities between PLCs and LLPs. You can check out 4 easy steps for registration of a private limited company in Bangalore. For more detailed information into when it could be wiser to go with PLCs
The procedures for the Private Limited Company Registration process and the LLP Registration process, are simplistic and very similar to each other. Some of the basic steps for the incorporation of these companies
|Private Limited Company||Limited Liability Partnership LLP|
|1. Obtaining Digital Signature Certificate (DSC) for Proposed Directors of the company||1. Acquire Digital Signature Certificate (DSC) for Prop Partners|
|2. Acquire Directors Identification Number (DIN) for Proposed Directors||2. Obtain Designated Partner’s Identification Number (DPIN)|
|3. Name Approval from Ministry of Corporate Affairs(MCA)||3. Need a Name Approval from MCA|
|4. Filing for Incorporation||4. Incorporation Filing|
The Ministry of Corporate Affairs (MCA) is also taking steps to ensure a faster processing way of company incorporation procedure to incorporate a company now in just 1 day.
It is easy to see that both PLC and LLP registration procedures are rather simplistic. Thus, it is not a question of ease of incorporation it comes down to deciding the direction and future of the company. We have also seen that it could be beneficial to incorporate PLCs sometimes. However, Le Intelligensia provides you with a comprehensive argument for why Limited Liability Partnerships (LLPs) should prefer as compared to Private Limited Companies.
There more advantages of LLPs over PLCs. In light of all these advantages, it is a wise choice for early-phase startups to do the LLP registration process. While PLCs have their benefits, LLPs have been grossly underestimated to help shape a company’s foundation. LLPs have proven to be an absolute miracle for construction and mechanical related type businesses ever since the incorporation of LLPs in the LLP act, 2008.