Is Pvt ltd good option for startups?

What is a private limited company?

A private limited organization is a willful relationship of at least two and not more than fifty individuals, whose obligation is restricted, the exchange of whose offers is constrained to its individuals and who isn't permitted to welcome the overall population to buy into its offers or debentures. Here, the risk of its individuals is constrained and the offers allocated to its individuals are likewise not unreservedly transferable between them.

What is a Limited Liability Partnership?

In India, LLP is dealt with another organization firm. No accomplice is made subject to the virtue of the free or unapproved activities of different accomplices and there is no joint obligation made by different accomplices. LLP is along these lines a body corporate and a legitimate element isolate from its accomplices, having ceaseless progression.
LLPs have developed in number since their presentation in 2008, however, they ought to be more mainstream than they currently are. This is on account of the LLP offers about every one of the advantages of a private constrained organization, with none of the drawbacks of an association firm. Private constrained organizations have more prominent materialness. Notwithstanding each of the LLP can offer, a private restricted organization recognizes investors and executives. Truth be told, regardless of whether you are hoping to raise financing, yet not for two or three years, you ought to emphatically consider an LLP over a private constrained organization.

Reasons for choosing Pvt Ltd. Company over LLP

•  Advantage of Funding - Funding is basic for beginning, keeping up, and growing a business. Proprietorship, organization firms, and Limited Liability Partnerships can't issue shares and are in this manner unfit to pull in value financing. This burden could be basic in the development phases of a business.
•  International Trade - Private limited organizations and restricted organizations are the main sorts of substances that take into account Foreign Direct Investment of up to 100% through the programmed course, which means, any remote element or outside individual can put resources into an organization with no earlier government endorsement. Elements like proprietorship, organization and constrained obligation association require earlier endorsement from the Government to acknowledge speculations from outside elements. Along these lines, if your business has yearnings for going global, at that point it is best to begin a private restricted organization.
•  Capital Needs–There is no need to place a huge amount of money in the bank to start a private company now.
• As capital is essential for running a business, it can be increased as and when the right time comes. A private company can allot new issues to other persons as well.
•  Perfect Exit Strategy – While opening a business people rarely think about exit plans. Private kind of companies has some of the best strategies for an exit policy. A private company is much better than any other kinds simply because of the less hassle which makes it easy to concentrate and devote more time to business planning and development. Here, only the shares need to be sold or transferred to other places in part or in full.

GST registration in India and other countries of the world

Goods and service tax is taking India by the storm. GST will bring in & One nation one tax & to unite roundabout taxes under one umbrella and facilitate Indian businesses to be globally competitive. The Indian GST circumstance is structured for effective tax collection, reduction in corruption, the easy inter-state activity of goods and so forth.

How is India’s GST Different?
When compared to other emerging markets, India & maximum rate of GST stands at 28%, which is the highest.

Most of the commodities in China and Brazil fall under 17%, 10% tax rate respectively. On the other hand developed economies such as France, Germany and United Kingdom have higher GST rates set between 19% to 20%. Latest data by Economic Co-operation and Development showed that average VAT/GST rate in major OECD countries is between 20-22% higher than the rate proposed for India.
Comparing GST of India with Other Countries Canada–The Goods and services tax here is also known as Federal Goods and services tax. The threshold exemption limit which is 20 lakhs for India is approximately 15 lakhs for Canadians. The returns and payments in case of Canada can be monthly, quarterly or even annually based on the turnover.

Singapore – The reduced rate for Singapore is 7 %. The threshold exemption limit is about 4.8 crores. The returns are usually based on monthly or quarterly. The reverse charges are usually applicable for the supply of services. In this case for India, the reverse charges are applicable for both goods and services. The exemptions allowed in such cases are a Real estate, financial services and rental.

Malaysia – The standard rate for goods and services tax in Malaysia is 6 %. The threshold exemption limit is about 75 lakhs. The accrual basics usually involve delivery of goods or services, issue of invoice or receipt of payment. The returns in case of large organizations occur on a monthly basis. The reverse charges are only applicable on imported services. Finally, the exemption services are for basic food, health, transportation, property and
agricultural land.

USA- This country does not have a GST because of its high level of autonomy.

UK – In case of UK this tax is known as a value-added tax. The standard rates are 20 %, 5 % and exemption cost are zero. The service for which exemption is viable is Medical, Education, Finance, Insurance, Postal services. As a result, we find GST model throughout the Commonwealth countries is similar which includes some variations. Contrary to India, other countries have a much higher limit for GST applicability thus reducing the burden on small
businesses. This will bring in challenges for our SMEs.