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Private Limited vs LLP

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Ankur Singhal

Student

20 Points Posted on 10 September 2023

Hi I want to incorporate a enterprise. Basic purpose of creation is to give loan to a public company of Rs 75 lakh & later on become their shareholder. Shall I open Pvt lmt or LLP??

If I open Pvt Ltd & show share capital of Rs 75 lakh or more, than I need to pay higher amount of stamp duty. Please suggest sny other option through which I can introduce money in Pvt limited without paying any extra amount.

If I go with LLP in this case, do I need still need to pay stamp duty on capital?

Replies (2)

Quick Summary

This discussion explores whether a Private Limited company or an LLP is more suitable for incorporating a business that will provide a loan of Rs 75 lakh to a public company and later become a shareholder. Key considerations include stamp duty on share capital for Private Limited companies and stamp duty on capital for LLPs. The conversation also touches upon the potential need for NBFC registration depending on the ordinary course of business and taxation differences.

sabyasachi mukherjee

Profession

20 Points Posted on 10 September 2023

Private limited vs llp

Chirag

Professional

20 Points Posted on 11 September 2023

Loan & Investment company required registration as NBFC ,so the company form of business is suitable , it all depends on the what constitute ordinary course of business ,like Giving Loan to Public company is A Basic Lending transaction if it's a part of objective then registration from RBI requires...else you can directly become shareholder by LLP mode only....For taxation point of view ,I think LLP & Cos are in same tax bracket ( For Capital Gains ) Except NBFC license when tax rate reduced...so it all depends on the end purpose and intent..

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