Trading firm (cloth retail) wants to change its constitution. Which will be better for implementation and taxation LLP or OPC?. Please guide. What are other implications?
Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 11 February 2016
OPC: An OPC is for entrepreneurs who are sure they want to have full control over their business. There can be no other shareholder or director, which also means no board meetings and fewer compliances. However, such a business cannot be very large because the Ministry of Corporate Affairs (MCA) requires all OPCs to become LLPs of private limited companies once their revenues cross Rs. 2 crore.
LLP: An LLP is for businesses, both small and large, that don't want to raise funding, either from a VC or the general public. For this reason, it tends to be the favoured business structure for legal firms, advertising agencies and web development shops.