Myth : LLPs Are the Same as Private Limited CompaniesFact : LLPs are flexible in management, while Private Limited Companies have a strict structure with shareholders and directors.
Myth : LLPs Do Not Require ROC FilingFact : LLPs must file annual returns with the ROC, even if they have no business activity.
Myth : LLPs Cannot Raise Funds or LoansFact : LLPs can get funds from banks, financial institutions, or partner contributions but cannot issue shares like a Private Limited Company.
Myth : LLP Registration is ComplicatedFact : LLP registration is faster and easier than a Private Limited Company. Just need a DSC, LLP Agreement, and form filing.
Myth : LLP Closure is DifficultFact : Closing an LLP requires formalities, but the Fast Track Exit (FTE) method makes it easier for inactive LLPs to shut down.
Myth : LLPs Do Not Need an AgreementFact : An LLP Agreement is required to outline partner roles, profit-sharing, and decision making, preventing disputes.
Myth : LLPs Are Not Tax FriendlyFact : LLPs get tax benefits, like no DDT and a 30% flat income tax with no extra surcharges.