Indore (Madhya Pardesh): CA Manoj P Gupta, has said that to start any new business, its legal form has to be decided whether its form is Partnership Firm, Limited Liability Partnership (LLP) or Private Limited Company. In which form will it remain. He said that while selecting the business format, all points like income tax (IT), company law, nature of business, business succession and transfer, foreign capital investment, following the prescribed legal procedures, facility of capital injection, startup benefits etc should be considered.
CA Gupta was addressing a seminar organised by Tax Practitioners Association and Indore CA branch. Gupta said that decisions should be taken only after thinking. He said that there can be a maximum of 50 partners in a partnership and a maximum of 200 shareholders in a private limited company. But there is no limit on the maximum number of members in LLP.
CA Gupta said that partnership firm and company can be converted into LLP. Through this conversion, benefits of both the convenience of partnership firm and the facilities of company format can be availed in LLP. But at the time of conversion, it will be very important to keep aspects of Income Tax and GST law in mind. Apart from this, the benefits of merger and demerger and valuation and listing of shares can be availed only in the company.
Co-speaker CA Pranay Goyal said that with changing times, the methods of doing business are also becoming scientific and equipped with new technologies and their administration with new technologies and a detailed study of tax liability is the need of the hour. He said that once the business legal form is decided, it is not easy to change it, hence the decision in this regard should be taken very thoughtfully.
TPA President CA JP Saraf while delivering the welcome address. said that deciding the form of new business i.e. whether to form a Partnership Firm or a Limited Liability Partnership (LLP) or a Private Limited Company for business is a very serious matter and the decision has to be taken with great importance.
The seminar was organised to understand which points are needed to be kept in mind in the decision- making process. On this occasion, CA Ajay Samaria, CA Shailendra Singh Solanki, CA Abhishek Gang, CA SN Goyal, CA Vijay Bansal, CA Manoj Gupta and a large number of members were present including CA Deepak Maheshwari, CA Ashok Khasgiwala, CA Sunil P Jain, CA Sanket Mehta and CA NP Aron.
