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Limited liability partnership

LLP is a limited liabilities partnership firm, which is form and acts as a body corporate further but in the taxation aspect, it is similar to a general partnership.

An LLP is a recognizable business form similar to a corporate body, which inclusive of all provision of a traditional partnership firm with the advantages of a Separate Legal entity. As it contains the features, legal provision of both Company and Partnership, we can say it the HYBRID Entity.

LLP is governed by the Limited Liability Partnership Act, 2008 which came into force on 01/04/2008. This Act was introduced with the idea of promoting the SMEs MSME Sector (Micro Small Medium Enterprises) to govern their business of corporate style with the advantages of self-governance and less compliance.

Following are the benefit of LLP

1 The important advantage of an LLP is that LLP is easier to start and manage and the process has lower formalities.
2 It has a low cost of registration as compared to a Company.
3, LLP is a separate body.
4, LLP has no minimum requirement for capital.
5, The partners would have limited liability to their agreed contribution in the LLP.
6, No requirement of compulsory Audit.
7, Annual compliance is lesser than companies.

  1. Not able to raise venture capital funding
  2. Rights of partners
  3. Greater penalties
  4. Filing of various returns
  5. Non- recognition 

Minimum Requirement to Start A LLP

Members: Two people are needed to register the LLP. However, there is no limit on maximum partners.
No Minimum Capital: required of Capital, in case of LLP is depending on the need of the business and contribution of partner in partnership. The Stamp Duty is based on the amount of capital.
Person requirement: One Designated partner of LLP must be from resident in India.
Name: Name of the LLP should be different from the other company and it must not be same or similar to the name of any other company, LLP or trademark which is registered or applied for.

All about Limited liability partnership

Limited Liability Partnership

LLP is a limited liabilities partnership firm, which is form and acts as a body corporate further but in the taxation aspect, it is similar to a general partnership.

An LLP is a recognizable business form similar to a corporate body, which inclusive of all provision of a traditional partnership firm with the advantages of a Separate Legal entity. As it contains the features, legal provision of both Company and Partnership, we can say it the HYBRID Entity.

LLP is governed by the Limited Liability Partnership Act, 2008 which came into force on 01/04/2008. This Act was introduced with the idea of promoting the SMEs MSME Sector (Micro Small Medium Enterprises) to govern their business of corporate style with the advantages of self-governance and less compliance.

Following are the benefit of LLP

1. The important advantage of an LLP is that LLP is easier to start and manage and the process has lower formalities.
2. It has a low cost of registration as compared to a Company.
3. LLP is a separate body.
4. LLP has no minimum requirement for capital.
5. The partners would have limited liability to their agreed contribution in the LLP.
6. No requirement for compulsory Audit.
7. Annual compliance is lesser than companies.
Limited liabilities

LLP liabilities are unlimited to the extent of its assets similar to a private limited company. And member’s liabilities are limited to the extent to its contribution.

LLP is incorporated by that person who has interested in consulting, trader, professional firm, but there is no restriction for any person. It has unlimited capacity for any activities done under LLP.

Disadvantages of the Limited liability partnership

Inclusion of Indian Citizen as a Partner – if any foreign person /NRI who wants to incorporate an LLP in India shall have at least one partner who is an Indian citizen. It means two foreign partners cannot form an LLP without having one resident Indian partner along with them.
Transfer of Ownership – Consent must require from all partners while transferring their ownership to other people.
Filing of various returns – It is the same as private limited all LLP have to disclose their document publicly. By filing Annual Statement of Accounts & Solvency and Annual Return with the Registrar each year and also must filing of Income Tax Return by LLP.
The number of partners –Minimum two partners required in LLP. If anyone member wasn’t s to leave the LLP, the LLP would be dissolved.
Non- recognition – LLPs are limited by subject to state regulations due to which they are not given due recognition in every state as a business structure.
Huge penalties – LLP is for SMEs but still has noncompliance penalties that are Rs.100 for every day till the time the offense of late filing continues.

Basic

INR 6,999/-

One Time Fee

  • LLP Registration
  • PAN, TAN
  • GST Registration
  • MSME Registration
  • Bank A/c.

Service Provide Within 7 Days

Standard

INR 11,999/-

One Time Fee

  • LLP registration,
  • PAN, TAN
  • GST Registration
  • Shop & Establishment Registration
  • MSME Registration
  • Trade Mark Registration
  • Logo Design
  • Opening Bank A/c.

Service Provide Within 15 Days

Premium

INR 24,999/-

Yearly Fee

  • Yearly Compliances
  • Yearly GST Compliances
  • Income Tax Return

Services Provided Before the Due Date

Frequently Asked Questions

In LLP there is one partner that shall be a designated partner that designated partner must be a resident of India.

Every Designated Partner/partner would be required to obtain a “Designated Partner’s Identification Number” (DPIN) on the lines similar to “Director’s Identification Number” (DIN) required in case of directors of companies apply for an application of DPIN as provided in Form 7

Procedure for incorporation of LLP

Step 1 Reservation of LLP name (e-form 1)

Step 2 Incorporation Documents (e-form 2)

Step 3 Details to LLP Agreement (e-form 3)

Step 4 Consent of Partners (e-form 4)

A person may cease to be a partner in accordance with the agreement or in the absence of agreement, by giving 30 days’ notice to the other partners. Notice is required to be given to ROC when a person becomes or ceases to be a partner or for any change in partners.

There is any change in Partner and DP (admission, resignation, cessation, death, expulsion) should be filed e- form 4 within 30 days of change with fees. And also Supplementary LLP Agreement to be filed e- form 3 with ROC within 30 days with fees given the alteration in mutual rights and duties of partners and Form 4 shall include a statement signed by the incoming partner that he consents to become a partner.

Yes, LLP are under obligation of maintain books of accounts and file their true and fair statement their due return to ROC. Via form 8 within 6 month form end of financial year.

No, Every LLP in India, whose turnover is exceeding more than 40 lacs or total contribution of its partner exceeding 25 lacs is mandatorily need to get its accounts audited every financial year, strictly in accordance with the rules and provisions provided in the LLP Rules of 2009

Financial year Yes, Every LLP is required to file their annual return via form 11 within 60 days form closer of

Financial year Yes, Every LLP is required to file their annual return via form 11 within 60 days form closer of

Yes ,as per provision of LLP Act 2008, I LLP can be convert into Private Limited / Unlisted Company.

Yes, The Registrar shall, on conversion of a firm by filing Form 17, private company or an unlisted public company by filing Form 18 into limited liability partnership along with prescribed fees, issue a Certificate of Registration under his seal in Form 19.

Whether a foreign LLP can establish a place of business in India

Yes, A foreign LLP can establish place of business in India By filing Firm 27 with particular of foreign LLP.