Anil (Partner) (24 Points)
27 January 2010If one wants to set up a company / LLP in order to manage investments, what is more advisable?
Assuming that the current objective is plan taxes on investments which will be more beneficial / cheaper / easy to maintain ?
Would appreciate if someone can throw some light on the subject?
Best Regards
Amir
(Learner)
(4016 Points)
Replied 27 January 2010
Dear Anil,
As far as taxability is concerned both LLP's & Companies are taxable @ 30% Flat.
In case of LLP U can deduct Partner's remuneration based on ur Income whereas in case of Company Director's remuneration is allowed irrespective of Income of the company...
But the complaince cost is less in case of LLP..So that will be better option
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 27 January 2010
Dear Anil...
Amir has given the perfect view according to ur situation..
I think LLP will be better if ur 1st priority is Lower the Compliance Cost..
But if u are going to get exposure for ur Company at National or Internation Level, then i suggest u for Company n not LLP.... Its purely from business point of view..
Adarsh
Sanjay
(CA Final n CS Final)
(324 Points)
Replied 08 March 2010
LLP is more preferrable for some of following reasons:-
1)LLP's Profit is taxed @ 30.9% whereas Company ,s Maximum Marginal rate of Tax is33.99%.
2)DDT is paid by Company on Distribution of dividend.DDT is N.A. for LLP
3)No audit requirement in case of LLP (if turnover does'nt exceed 60 lakh). Audit is Compulsory for all companies.
4)Less compliance burden in case of LLP.
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