Hello,
If an entity(with 2 foreign national directors/partners) wants to start operating in trading(both local purchase/sale and import/export of organic products(both food and non-food), which of the forms of the given below organizations would you advise:
a) LLP
b) Pvt Ltd Company
Considering in mind that It should easily be able to obtain Foregin Funds, Contribution, Foreign Inward Remittance etc.
I've read that it is easier for a Pvt Ltd Company to obtain permission for the same than as compared to an LLP. In other words, there are restrictions in certain cases for an LLP to obtain Foregin Funds. Is this so?
Obviously, if both are at par, it would be better to opt for LLP since its tax rates are a little lower(due to surcharge not applicable), no DDT and also it has less formalitles like audit not compulsory unless t/o>40 lacs or capital>25 lacs.... Also, I believe the cost of formation of an LLP is much lower than a Pvt Ltd Company.
CAclubindia
