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Quatation of Incorporation Fees For Incorporate LLP-10,000 Fees For Incorporate Pvt. LTD - 12,000 Fees For Incorporate NGO - 20,000

Section 8 companies have several tax benefits such as exemptions from some income tax provisions and deductions. They also have minimal share capital requirements compared to other company types. Section 8 companies can transfer ownership of assets more easily and have flexibility setting meeting dates and notice periods. Limited liability partnerships (LLPs) provide liability protection for partners similar to private companies. They have fewer compliance requirements but more flexibility in partner agreements than private companies. LLPs also have easier processes for starting and winding up the business compared to private companies. Private limited companies offer liability protection for shareholders. They provide continued existence of the business even after an owner's death. Private companies may also enjoy some tax advantages like lower corporate tax rates.

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146 views3 pages

Quatation of Incorporation Fees For Incorporate LLP-10,000 Fees For Incorporate Pvt. LTD - 12,000 Fees For Incorporate NGO - 20,000

Section 8 companies have several tax benefits such as exemptions from some income tax provisions and deductions. They also have minimal share capital requirements compared to other company types. Section 8 companies can transfer ownership of assets more easily and have flexibility setting meeting dates and notice periods. Limited liability partnerships (LLPs) provide liability protection for partners similar to private companies. They have fewer compliance requirements but more flexibility in partner agreements than private companies. LLPs also have easier processes for starting and winding up the business compared to private companies. Private limited companies offer liability protection for shareholders. They provide continued existence of the business even after an owner's death. Private companies may also enjoy some tax advantages like lower corporate tax rates.

Uploaded by

Manish Jain
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Quatation of Incorporation

Fees for Incorporate LLP- 10,000


Fees for Incorporate Pvt. Ltd- 12,000
Fees for Incorporate NGO- 20,000

Advantages of Section 8 Company


Tax benefits: Section 8 Company is a non-profit organization that is why they are exempted from
some provisions of the income tax. They are also given numerous other deductions and other tax
benefits. They avail benefits under section 80G of the Income Tax Act, 1961. They also are required
to pay less stamp duty as compared to other organizations.

Minimized Share Capital: Unlike the other limited companies like private, public, or one person, the
companies registered under section 8 doesn’t require much share capital. They can be directly
funded from subscriptions or donations made to them.

Use of title: Unlike the other companies, who have to use the title as ‘limited company’, section 8 of
the IT Act exempts them for the use of any suffix or title, they can still exercise their functions without
informing the public of their limited liability status.

Ease at Transfer of title/ownership: Unlike the limited liability companies who are not allowed to
transfer the title or ownership, but as per section 8 of the Income Tax Act, 1961 allows the transfer
of title or ownership of both movable and immovable interest with no hurdles or restrictions of any
sort.

There are various advantages of Section 8 Company like exemptions from income tax act, ease of
fixing the date, time and place for annual general meeting, conduction of general meetings under a
short period of notice i.e., within 14 days instead of 21 days for limited companies etc.

Advantages of LLP
Separate legal entity: An LLP is a separate legal entity. This means that it has assets in its
own name and can sue and be sued. Furthermore, one partner is not responsible or liable for
another partner’s misconduct or negligence.
No owner/manager distinction: An LLP has partners, who own and manage the business.
This is different from a private limited company, whose directors may be different from
shareholders. For this reason, VCs do not invest in the LLP structure.

Flexible Agreement: The partners are free to draft the agreement as they please, with
regard to their rights and duties.

Limited liability: The liability of the partners is limited to the extent of his/her contribution
to the LLP. Unless fraud has been detected, the personal assets of the partner are protected
from any liability of the LLP.

Fewer compliance requirements: An LLP is much easier and cheaper to run than a private
limited company as there are just three compliances per year. On the other hand, a private
limited company has a lot of compliances to fulfil and conduct an audit of its books.

Easy to wind-up: Not only is it easy to start, it’s also easier to wind-up an LLP, as compared
to a private limited company. While it still takes two to three months to complete this
process, it can take over a year to close a private limited company.

Advantages of LLP
Limited Liability

During the recent recession, which lasted from December 2007 - June 2009, many businesses
experienced financial problems and permanently closed. One advantage of owning a private
limited company is that the financial liability of shareholders is limited to their shares.
Therefore, if a private limited company was in financial trouble and had to close,
shareholders would not risk losing their personal assets. Although, perpetrating a fraud
related to the private limited company would negate an owner's limited liability protection.

Restricted Trade of Shares

The restriction placed on the sale or transfer of shares may be considered an advantage or
disadvantage, depending on your outlook. It is an advantage to some shareholders because
shareholders who want to sell shares cannot sell them to outside buyers. Shareholders must
also agree to the sale or transfer of shares; therefore, the risk of hostile takeovers is low. The
restriction placed on the sale of shares is a disadvantage because shareholders have limited
options for liquidating shares.

Continued Existence

Another advantage of a private limited company is its continued existence, even after the
owner dies or leaves the business. Private limited companies are incorporated. When a
business incorporates, it becomes an independent legal entity, meaning it is able to sue or
own assets separate from the company owner. A private limited company differs from a sole
proprietorship in that the latter is owned by a single individual who is personally responsible
for the company's business debts and essential to its continued existence.

Tax Breaks

Private limited companies also enjoy tax advantages. For example, their corporate taxes may
be lower than those paid by other types of businesses. Financial statements for private
limited companies must be filed no later than nine months after the fiscal year ends. The first
accounting period begins the same day that the business is incorporated. When pursuing tax
advantages, private limited companies must keep accurate records.

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