The choice of most of the entrepreneurs is opting for LLP registration as small businesses and now wish to convert into a private limited company for growth in business or for infusing equity capital .LLP having plans for expanding the business by raising equity capital then at this point of time, requirement to convert to a private limited company.
LLP is preferred when the capital contribution is less than Rs.25 lacs and annual turnover is less than Rs. 40 lacs and in this case, LLP is not required to audit their statements which reduces cost of compliance. But If LLP crosses the aforesaid prescribed limited, then it is better to opt for Private Limited Company as the compliance requirement of LLP and private limited company becomes almost same.
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