LLPs on Hold In India.
Limited Liability Partnership ( LLP) is the most preferred and popular form of business registration in India. But with the MCA blocking the DIN forms for new LLPs since approx last 4 months aspiring new entrepreneurs in India wishing to form LLPs for their new startup are not able to do so. LLPs can be formed only with Partners already holding DIN nos, means may have been Directors in previous companies.
Surprisingly no one in the Ministry is able to provide clear and crisp information about the reason for the discontinuation neither any confirmation available on whether LLPs will exist in India as the simplest form of business registration. It’s being difficult for the consultants and Company Secretaries helping new startups to form their startups to update their clients about the LLP formation status. The MCA website to does not have any clear updates about the future of LLPs in India.
Now, in this case, New startups have 2 options before them :
Private Limited Company
Partnership Firm which provides the same format of business registration as LLPs, minus the MCA link. Partnership Firms do not have the Limited Liability Feature and are low on compliance.
Private Limited company registration which is the eldest, accepted, popular, the professional format of business registration, including the Limited Liability feature. A bit high on annual compliance.
So make a wise choice or call ENVIZI BUSINESS SOLUTIONS LLP to help you choose the best for you after analyzing your business objects by our experts.