The Companies Act, 2013 provides for converting a Private Limited Company to a Public Limited Company by altering the MOA and AOA of the company and replacing private limited to public limited.
A Limited Liability Partnership (LLP) may prove to be a much superior business structure than a regular partnership. LLP are having minimal compliances, tax benefits, limited liability, separate legal entity, no audit requirements below a certain capital, no cap with regard to the number of partners etc.
Anyone can choose a Private limited company to build a scalable business. It’s the most famous legal structure for business. There is limited liability for all the directors, in case of bankrupt, banks/creditors can sell only company assets but not the personal assets of directors.
A Sole Proprietorship is an easy structure to start your entrepreneur journey, but it might create obstacles in your future growth. If you’re looking to add partners in your business to have more diversity in thoughts, but don’t want too much of disturbance, in the way of compliance, structure or cost, it is wise to switch to an LLP.
The partnership is when two or more people agree to go into business together and both might be from same family or same association, whether or not they have a written contract. Ideally its mandatory to validate the details in a partnership agreement that specifies each partner's rights, responsibilities, and share of the profits.
Converting your sole proprietorship into a Private limited company is often a wise decision. Changing your existing structure of Sole proprietorship to a private limited company might help you to expand your business reach, have better access to various sources of financing, protect your personal assets, manage your liabilities, enjoy tax incentives and benefits given by Govt., attract more investors and approach quality talent for your company.
Starting a business with a Limited Liability Partnership (LLP) is a good idea. The next stages is when you what to convert Limited Liability Partnership (LLP) to a Private Limited Company for more growth in business or maybe for Funds Raising.
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