The 9 Major Difference between Pvt Ltd and LLP

This is a common suspicion that usually arises for business owners when they are ready to start a business. Here we have sorted out the major differences between Pvt. Ltd. and LLP.

We hope this blog helps you to choose the right entity.

Governing Act

• The Pvt. Ltd. company comes under the Indian companies act.
• The LLP comes under the LLP act 2008.

Members

• The Pvt. Ltd. company requires at least two (2) shareholders and the maximum limit is two hundred (200) shareholders.
• For LLP companies, the minimum shareholders limit is the same as Pvt. Ltd. company (2), and there isn’t any maximum shareholders limit. You can add as many shareholders as you want.

Directors

• Pvt. Ltd. directors where LLP there are called designated partners. For both companies, the minimum number of directors/designated partners are two (2). At the same time, the maximum number of directors for Pvt. Ltd. can be fifteen (15), and there isn’t any maximum limit for LLP designated partners. 

Board Meeting

• The Pvt. Ltd. company must conduct four board of directors meetings in a financial year. For LLP, there isn’t any compulsion for board meetings.

Statutory Audit

• Pvt. Ltd. companies must submit the reports to the auditor every year.
• For LLP companies, they no need to submit such records until the turnover reaches 40 Lakhs.

Register Maintenance

• The Pvt. Ltd. companies should maintain loads of registers and records for ROC compliance.
• The LLP companies don’t need to maintain reports and documents.

Legal Compliance

• Pvt. Ltd. companies need to prepare lots of compliances after forming the company. 
• LLP companies don’t need to keep such reports and documents as much as Pvt. Ltd.

Company Name

• The Pvt. Ltd. company needs to add a word that refers to their service, followed by the prefix. And the company name ends with Pvt. Ltd.
• For LLP, Everything is like Private Limited company, but the company name ends with LLP.

Registration Procedure

Like other procedures, the private limited registration and limited liability partnership registration procedures also differ from one another. We will see that in more detail in another post.

If you have any doubts other than this, Get advice from a business lawyer for all your IPR related concerns.

5 THINGS YOU WILL GET IF YOU REGISTERED FOR A PATENT!

We all know what a patent is, though I will start with a brief introduction.

A patent is a legal document giving the patent owner certain exclusive rights like use and sell their invention for a limited time. The invention is granted by the government of the state or the country, depending on the national rules.

An invention requires enormous time and money; above all, it requires patience. Inventing such ideas need to be protected. Continue reading to know what you will get if you registered for a patent.

Exclusive Rights

As mentioned earlier, the patent provides exclusive rights to the inventor to prevent others from using it. The patent is valid for 20 years (for India) from the date of filing the patent application. 

Strong Market Position

The inventor can protect his invention thus by preventing others from using the patented invention, thereby reducing the competition. Thus establishing a place in the commercial market is very easy.

Higher Returns on Investments

Having contributed a lot of time and cash in developing the creation, under the umbrella of selective rights, the innovator could get the development to the business market and accordingly get more returns on the investment. This relies upon the financial utility of the patent. Thus, the creator should ensure the commercial viability of the patent prior to contributing to the patent.

Opportunity to License or Sell the Invention

Suppose the inventor doesn’t want to exploit the invention himself. In that case, he can sell or license the rights to commercialize for another enterprise. This would result to bring royalty and revenue to the inventor.

Positive Image for the Enterprise

A patent is a property, an important asset for your company. The positive reputation that results from this may be valuable in attracting customers as well as investors. Further, this may prove useful for raising funds, finding business partners and also increase the company’s market value.

Closing Thoughts

Suppose you are not familiar with IP rights. In that case, you can get assistance from experts excelling in patent registration and other branches of IP rights.

Importance And Benefits Of Trademark Registration In India

Most of us know the importance of trademark registration. It plays a significant role in promoting the products, as well as the quality of the product.

A trademark ™ is a visual symbol that may consist of a word, signature, device, numeral, heading, label or a name that is written in a particular style in order to make it distinct from others.

Some of The Benefits of Trademark Registration

It protects brand value and builds trust  

We all know today the well-established brands are known by their trademark, which creates a positive impression and build trust among the customers in the market. However, trademark helps in customer retention, and it attracts new customers/clients.

It gives you independent ownership right

The Registered proprietor of the trademark has independent ownership right over the trademark. He can enjoy sole ownership and restrict the unauthorized from using it. It provides him with a legal right to sue against the unauthorized use of the registered trademark.

It Differentiates product or services from others

Trademark makes it easy for customers to identify products or services. And it helps to distinguish from the existing competitors. Hence trademark is considered an efficient commercial tool.

You can Use ® symbol over the trademark

The Registered Proprietor of a trademark can Use the ® symbol over the trademark, which indicates that the trademark is registered and no one can use the same trademark without permission. 

Protection against infringement

No one can use the trademark without the permission of the Registered proprietor. Use of registered trademark without the permission of the consenting person will be sufficient to take action against them according to the trademark act.

Protection for 10 Years

Registered trademarks have an expiration date. You have to just renew it timely. Renewal of trademark is cost-efficient.

Attract new Consumer’s, customers or clients: 

It creates a positive impact on the organization. Eventually, it attracts new customers and clients easily.

Learn more about trademark registration in Bangalore and its process.

The Private Limited Company Registration Process

There are various entities in the registration of a company. Private limited registration is a type where company ownership split into shares and shareholders. To register a company as a private limited company, it is an obligation to fulfil the following criteria.

• It must have at least two adults to act as a director of the company. There can be up to a maximum of 15 directors.
• It cannot invite the general public for its securities subscription.
• The minimum amount of capital should be Rs.100 000.

These are the requirements for registering a private limited registration in Bangalore.

What Are the Advantages of a Private Limited Company?

• Compared to the public limited company, the private limited company is easy to form with 2 members.
• It gives the company a status to borrow funds from the market.
• It helps the company with perpetual succession, which means that it has continuous existence until its dissolution.
• The Private Limited Company can commence the business soon after its registration.
• The control and management are generally in the hands of capital owners.
• It can start immediately after the registration.

The process to form a Private Limited Company

• Procure Digital Signature Certificate
• Obtain Director Identification Number (which is issued by the Ministry of Corporate Affairs (MCA).)
• Obtain clearances and NOC certificate from concerned ministries related to the work of the company. Like the Ministry of Environment, Forest and Climate Change etc.
• Reservation of Name through Form INC-1.
• Certificate of Incorporation from the Registrar of Companies.

These are the basic stuff you should know before planning to choose the private limited registration entity.

We have covered this topic in more detail on our website. Check the topics given below.

Documents Required to Register a Private Limited Company

Registered Office Proof

How to Choose a Name for a Private Limited Company

Feel free to contact us to know more details about company registration in Bangalore.

Rights and Responsibilities of Partners in a Partnership Firm

A partnership is a relation between two or more persons admits to sharing the business’s profit and loss run by one or more person acting for all.

The persons who have entered into the partnership are only known as ‘Partners’.

After registering the partnership firm, when a partner enters, they should make an agreement among partners, which is called a partnership deed. That includes the roles and responsibilities of the partner among other partners. (e.g.) profit/loss sharing, salary, interest on capital, admission of a new partner, etc.

Subject to the partnership deed registered between the partners, the provisions of the Indian Partnership Act, 1932 also define certain general rights and partners’ responsibilities.

Rights of the partners:

Taking part in the conduct of the business

• Each partner has a right to take part in the conduct of the business.

Expressing opinion

• Each partner has the right to express their opinion before making a critical conclusion.

Sharing profits

• Sharing the profits as well as loss. If the ratio of profit/loss didn’t mention in the partnership deed, then the partners should make an equal share.

Accessing the books of accounts.

• Each partner has the right to review, access and take a copy of the book of accounts.

Right to object to the admission of a new partner

• Each partner has the right to prevent the entry of a new partner. 

Right to dissolve the firm.

• A partner of the partnership firm has the right to dissolve the partnership with all the other partners’ consent.

Responsibilities of partners:

To be faithful to other partners.

• Maintaining a transparent and healthy relationship among other partners.

Sharing losses

• All the partners of a partnership firm should pay the liable equally for the firm.

Rendering real accounts and full information.

• Every partner must provide real and full information about the firm’s account.

Covering up for any loss caused by the fraud.

• If one of the partners is suspected to be fraud, then the fraudulent partner is bound to compensate the firm or the partners for the loss.

Being accountable for any personal profits earned by the partners.

• If a partner earns profit from any of the firm’s stream or uses the firm name, the partner must pay it to the firm.

Limited Liability Partnership (LLP) Registration in Bangalore

 

For a long time, a need has been felt to provide for a business format that would combine the flexibility of a partnership and the advantages of limited liability of a company with less legal compliance. The Limited Liability Partnership format is an alternative corporate business vehicle that provides the benefits of limited liability of a company but allows its members the flexibility of organizing their internal management on the basis of a mutually arrived agreement, as is the case in a partnership firm.

What is an LLP?

A law to allow "Limited Liability Partnership" (LLP) in India has been enacted by the Parliament of India in the year of 2008. The Act was named the Limited Liability Partnership (LLP) Act of 2008. 

Suitable for whom

This format would be quite useful for small and medium enterprises in general and for the enterprises in the services sector in particular. Internationally, LLPs are the preferred vehicle of business particularly for the service industry or for activities involving professionals.

Advantages of LLP

Renowned form of business: Though the concept of Limited Liability Partnership has been recently introduced in India it is a very known concept in other countries of the world especially in the service sector.

Flexible to operate: LLP Act 2008 gives LLP the most freedom to manage its own affairs. A partner can decide the way they want to run and manage the LLP, in form of an LLP Agreement. The LLP Act does not regulate the LLP to large extent rather than allows partners the liberty to manage it as per their will.

No minimum capital requirement: LLP can be started with the minimum amount of capital money. Capital may be in the form of tangible, movable assets like Land, machinery, or intangible form.  The capital requirement in the case of a Private Company( Requirements for Registration of a Private Company)  and Public Company(Requirements for registration of a Public Company) is Rs. 1, 00,000 and Rs. 5,00,000 respectively whereas no such mandatory capital requirement specified under the LLP.

No limit on owners of business: LLP may have partners varying from 2 to many. There is no limit for partners in LLP. An LLP requires a minimum of 2 partners while there is no limit on the maximum number of partners in contrast to a private company wherein there is a restriction of not having more than 200 members.

No requirement of compulsory Audit: LLPs are not required to audit the accounts. Any other company (Public, Private) are mandated to get their accounts audited by the auditing firm. 

LLP is required to audit their account in the following situation: When the contributions of the LLP exceeds Rs. 25 Lakhs, or When the annual turnover of the LLP exceeds Rs. 40 Lakhs Limited liability protects the member’s personal assets from the liabilities of the business. LLP’s are a separate legal entity to the members.

Minimum requirement: The minimum number of partners to incorporate an LLP is 2. Among the partners, there should be a minimum of two designated partners who shall be individuals, and at least one of them should be residents in India. Unlike Private Limited, there is no minimum authorized capital requirement for an LLP. The company should hold an Office space within Indian territory. 

Documents required:

1. Aadhar card for all the partners
2. PAN Card of all the parties 
3. Passport size photo of all the parties
4. Last two months bank statement
5. Rental deed for office space
6. EB receipt of the office premises 

Registration process 

Step 1: Obtaining DSC And DPIN

Step 2: Application For Name Approval

Step 3: LLP Agreement

Step 4: LLP Incorporation Certificate

Step 5: Apply For PAN & TAN & Bank Account

At Le Intelligensia, We specialize in incorporate a company whether it is LLP registration. Talk to us about your intellectual property requirement at 9108569562 or Send us an email at arivu@leintelligensia.com

Source: https://leintelligensiaipr.com/limited-liability-partnership-llp-registration-in-bangalore

How to file GST returns?

 

Nowadays we need not go to a common well to fetch water and use it, Water comes to our house through pipelines, we drive on highways at 100kmph, we live a safe life with our military safeguarding at the border, 24/7, CCTV inroads are ensuring our safety, but how the government is getting money for all these things. Not only today, even in the ancient days, kings and emperors gave plenty of facilities to people. What is the source of income? The answer is simple, TAX. The government is levying plenty of taxes such as income tax, costumes, property tax. Nowadays, the most common one is the GST. 

What is GST?

Goods and Services Tax (GST) is an indirect tax that was rolled out on July 1, 2017. This act compiled various indirect taxes such as service tax, sales tax, excise duty, and various other indirect taxes. 

Who has to register under GST?

• Business turnover crosses more than 40 Lakhs of turnover 
• Individual or business who is doing intrastate trade
• Anyone who is into casual trade
• Every e-commerce aggregator 

GST basic Mandatory returns forms

• GSTR-1
• GSTR-3B
• GSTR-9A

GSTR 1

Tax return for outward supplies (in other words called as sales) made (contains the details of the interstate as well as intrastate B2B and B2C sales including purchases under reverse charge and interstate stock transfers made during the tax period). The last date for filing GSTR 1 is the 10th day of every subsequent month. 

GSTR 3B

GSTR 3B is a monthly self-declaration to be filed, for furnishing summarized details of all outward supplies made, input tax credit claimed, tax liability ascertained, and taxes paid. The last date for filing GSTR 3B is the 20th day of every subsequent month. Failing which there will be a penalty of Rs.20 every day. 

GSTR 9

The GSTR 9 is an annual return statement that needs to be filed once in a year by every GST holder. The statement comprises of all sales any purchase made during the last financial year. 

Other forms

GSTR 2A

This form comprises all inward supplies i.e. to say purchases. The particulars in this form are auto-populated based on data filed by the suppliers in their GSTR-1 return. This form is just a view only form and we cannot make any changes to this.

GSTR 4

This is the return form for composition scheme holders. The Composition Scheme is the one where the GST holder’s turnover up to Rs.1.5 crores. 

GSTR 5

This form is the return to be filed by non-resident foreign taxpayers, who are registered under GST and are carrying out business transactions within India.

GSTR 7

This form is for submission of TDS deducted, the TDS liability payable and paid and TDS refund claimed if any.

GSTR 8

This form is for submitting monthly return by e-commerce operators registered under the GST

Hence, Get a free consultation for GST Registration in Bangalore: Please Contact – 910-856-9562

Source: https://leintelligensiaipr.com/how-to-file-gst-returns