Llc Limited Liability Companies Within India
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FAQ
LLC (Limited Liability Company) is a business structure that has become popular worldwide. In India, LLCs can be registered as Limited Liability Partnerships (LLPs) and Private or Public Limited Companies.
The cost of registration of a sole proprietor company is nearly Rs 2,500 while that of a partnership firm is nearly Rs 5,000. If you incorporate a private (LLP or LLC) company with a minimum authorised capital of Rs 1,00,000, the registration will cost you Rs 7,000.
Depending on elections made by the LLC and the number of members, the IRS will treat an LLC either as a corporation, partnership, or as part of the owner's tax return (a disregarded entity).
In an Ltd, a shareholder's liability is limited to the amount they've invested in the company. On the other hand, in an LLC, members are protected from some or all liability, depending on the applicable jurisdiction. In an Ltd, shares cannot be sold to the general public.
Moreover, in a private limited company, taxation is at the rate of 30%. In addition to the general levy of the income tax act, there are certain additional taxation charges that private limited company attracts.
