Definition
For Companies: Withholding tax for companies refers to a tax levied on certain types of income, such as dividends, interest, or royalties, at the source of payment. Companies making payments subject to withholding tax are required to deduct a percentage of the payment and remit it directly to the government on behalf of the recipient. Withholding tax aims to ensure the collection of taxes on income earned by non-resident individuals or entities.
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Private Limited Company (Ltd)
A Private Limited Company (Ltd) is a type of company where the ownership is divided into shares held by a small number of shareholders. The liability of shareholders is limited to the amount unpaid on their shares, and the company’s shares cannot be traded publicly on the stock exchange.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a business structure where partners have limited personal liability for the debts and obligations of the partnership. Each partner’s liability is limited to their investment in the LLP, and they are protected from the actions of other partners.