8 Things You Should Know About Limited Companies (LLC) In India
                     8 Things You Should Know 
About limited Companies (LLC) 
In India
1. How can the company be formed?
● The Legal plan of action for setting up a LLP is also free of inconvenience. You 
Should have to decide on the partners with the mode of business and sign the 
message (Memorandum) as well as the Articles of Association and submit the 
Registrar the same along with the prescribed fees. Then the Registrar shall follow 
up with the proceedings and you just have to follow the instructions.
2. And, What’s the Main Advantage of the LLP?
● The main advantage of a LLP Company remains that its formation of cost is much 
lower than any other form of business (LLC company) ventures, and comes with 
much less institutional requirements. Besides, especially in case of small scale 
enterprises, it’s very easy to operate, manage and even land up.
3. Is Audit Necessary for the Accounts?
● Well, it is required only if your annual turnover be greater than 40 lakhs, or if the 
individual contribution exceeds 25 lakhs. If none is the case, A LLP company 
should maintain a proper annual account that is accessible to all the partners.
4. What are the Rights of the Partners?
● Even though the main duties of the partners are provided by the house of Law, the 
rights, duties and other obligations of the partners actually work as per the 
agreement set between them.
● However, the most important thing about  LLP is that the liability of the partners is 
restricted to his/her contribution in LLP. This means that if you own an LLP with 
any friend of yours, you don’t have to show or highlight your own personal and 
filial assets to the partners and the Government. However, in case you’re engaged 
in fraudulent, you have to!
5. Why Should You Go for It?
● If you’re the owner of any LLP, it is without vagueness that you’re the owner, and 
not any mere shareholders who cannot participate in the management of the 
company.
● Even though there has to be a minimum of two partners involved, with no 
“maximum” requirements, each partner isn’t able to be answered for another 
partner’s faults and negligence.
6. How Many Types of LLP Companies can be there?
● If you are planning for opening a LLP Business set out, the first question you 
should have to face will be whether your business set up should be a Private 
Limited Company or a Public Limited Company. 
● This is, however, adjudged by the minimum capital requirement for the same. If 
your Authorised Share Capital is less than or equal to Rs. 100,000, then it’s a 
Private Limited Company, and if the same is around Rs. 500,000, then it’s 
adjudged under the Public Limited Companies.
7. What are Limited Liability Companies?
● A Limited Liability Company (LLC) is one where the points of corporate structure 
are blended into those of a partnership company.
● Being a “limited liability” enterprise means that the company is a separate legal 
entity from its owners and can own assets in its own name, and not in the name of 
the owners. And, in case of any legal discrepancies, it has the right to sue or to be 
sued.
8. LLP Act
● Along India, LLCs were available in the whole wide world. However, in India, they 
became legal on 1st April, 2009 when the Indian Government formulated the 
Limited Liability Partnership Act.
● However, this Act is applicable to small firms too. And, if you’re thinking big, you 
will need to register your company with the Companies Act, 2013.
●  You explore all the details here
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