Module: General Practice
Q129: When choosing a structure based on regulatory compliance burden, which of the following statements is INCORRECT?
✅ Correct Answer: D
Correct Option: D (This statement is False). Concept: Compliance Differences.
Reasoning: The Error in D: Traditional Partnership Firms (Act of 1932) are registered with the Registrar of Firms, NOT the Registrar of Companies (RoC). Furthermore, they are NOT required to file their balance sheets publicly or with the Registrar annually.
This privacy is a major reason some choose it over an LLP.
Comparison: Pvt Ltd (A): Highest burden.
Mandatory Audit always.
LLP (C): Moderate burden.
Small LLPs (Turnover less than 40 Lakhs) don't need an audit, saving costs.
Reasoning: The Error in D: Traditional Partnership Firms (Act of 1932) are registered with the Registrar of Firms, NOT the Registrar of Companies (RoC). Furthermore, they are NOT required to file their balance sheets publicly or with the Registrar annually.
This privacy is a major reason some choose it over an LLP.
Comparison: Pvt Ltd (A): Highest burden.
Mandatory Audit always.
LLP (C): Moderate burden.
Small LLPs (Turnover less than 40 Lakhs) don't need an audit, saving costs.