Whether the LLP registration is necessary for a start up ?

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  1. Swagat Pattanaik

    Swagat Pattanaik New Member

    If it is a start up registered under Indian Partnership act , then is it necessary to register it as LLP ? If registered also , then what are the benefits it will get ? Also I got to know that if the company is not registered under MCA then no company is willing to give any personal loan or credit card at all .Please guide me on this .
     
  2. Neha Sharma

    Neha Sharma Active Member

    No, it is not necessary for a start-up to create and register a LLP

    You have simply created a partnership firm. Y0u may or may not register your partnership firm.

    LLP is different from a partnership firm
     
  3. Neha Sharma

    Neha Sharma Active Member

    Yours is a partnership firm and not a company... Therefore no need to get registered with MCA
     
  4. Swagat Pattanaik

    Swagat Pattanaik New Member

    If registered also , then what are the benefits it will get ? Also I got to know that if the company is not registered under MCA then no company is willing to give any personal loan or credit card at all .Please guide me on this .
     
  5. Neha Sharma

    Neha Sharma Active Member

    The rule mentioned by you is for companies and yours is not a company

    Yours is a partnership firm
     
  6. Neha Sharma

    Neha Sharma Active Member

    The benefit of registering a partnership firm is that in case their is a dispute between the partners, you can go in the court of law.
     
  7. Swagat Pattanaik

    Swagat Pattanaik New Member

    Thanks Neha for the update , but I am working as a finance manager in a start up. But recently there are few incidents happened where in couple of our employees applied for credit card as well as personal loan.But all of their application got rejected just because our company is not registered under MCA list of firms or companies even though they had a good net salary take home. So I want some suggestion on this regard.
     
  8. Swagat Pattanaik

    Swagat Pattanaik New Member

    Can somebody please reply on my above query ?
     
  9. Neha Sharma

    Neha Sharma Active Member

    In that case, you can form a Company or a LLP and get it registered with MCA.

    The Company/ LLP form of structure will help you in such aspects.

    However, their would be additional compliance requirements.

    As you already have a good no. of employees, I'm assuming that you would be having an established business and you would be able to meet the costs associated with govt. compliances
     
  10. radhikasri

    radhikasri New Member

    No, it is not necessary to register under Indian Partnership act. The concept of Limited Liability Partnership (LLP) was introduced in India by Limited Liability Act, 2008. The basic objective behind introducing the concept of LLP was to provide Limited Liability to its members and at the same time, it is easy to maintain. The unique feature of LLP is that one partner is not liable for the negligence or misconduct of another partner and it has a combination of advantages of a Private Limited Company and Partnership Firm. Limited Liability Partnership is considered as separate legal entity and partners are liable only to the extent of their capital contribution.
     
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