llp Registration (limited liability partnership)

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What is Limited liability Parnership (LLP)

llp Registeration and llp in india

A Limited liability partnership (LLP) is a partnership in which some or all partners have limited liabilities . Limited Liability Partnership(LLP) is an alternative corporate business form that gives the benifits of both corporation and partnership . An llp operates like company but for all purpose of taxation either Goods or Service Tax or any other stipulated tax an llp is treated like any other partnership firm .

LLP is a body coporate and a legal entity seperate from it's partners it is a perpetual succession unlike partnership and like company . In llp liabilites of the partner are limitted upto the share in capital no partner is liable on account of the independent or unauthorized action of other partner thus allowing individual partners to be shielded from joint liability created by another partner's wrongfull business decision or miscounduct

LLP Registration (Limited Liability Partnership ) Process

Applyfor Digital Signature Certificate (DSC) It is madatory to be a designated partner in LLP
Apply for Designated Partner Identification Number (DPIN) or Director Indentification Number (DIN)
Apply for Name Reservation for LLP which is valid for 90 day
Prepare the document for Incorporation and Submit the document to ROC
Prepare the agreenent and Submit the agreement to ROC in 30 days
Apply for the Permanent Account number (PAN) for the company and Tax Tax Deduction and Collection Account Number (TAN)

LLP Registration (limited liability Partnership ) Fees

Silver Plan

7,956
6000
  • Digital Signature Certificate (DSC)
  • DPIN/DIN
  • Name Approval
  • Icorporation
  • Goverment Fees
  • PAN
  • TAN
  • GST Registration
  • Goverment Fees for GST

Platinum Plan

17,656
11,000
  • Digital Signature Certificate (DSC)
  • DPIN/DIN
  • Name Approval
  • Icorporation
  • Goverment Fees
  • PAN
  • TAN
  • GST Registration
  • TDS return filling for one year
  • Goverment Fees for GST
  • TradeMark Registration
  • GST Return filling for one year

Gold Plan

11,956
9000
  • Digital Signature Certificate (DSC)
  • DPIN/DIN
  • Name Approval
  • Icorporation
  • Goverment Fees
  • PAN
  • TAN
  • TDS return filling for one year
  • Goverment Fees for GST
  • GST Return Filling

Document Required For LLP Registration

PAN of Two Partners
Addhar card of Two Directors
Utility bill of Two partners
Utility bill of registered office
If registered office is rented NOC from landlord

LLP in India

Limitted liability PartnerShip (LLP) is a form of company which consolidates the features of partnership and the company and adopt the best of both Corporate forms. By confering the partners with the flexibility of organizing their internal managerial structure as a partnership while limitting the liability of the partners to the proliferation of their contribution in LLP which is coresponding to the seperate legal personality of the company.

History Of LLP

The Limited liability Partnership Act 2008 was enacted by the parliament of Indiaon 2009 and has been in effect since 31st march 2009 . However, only limited sections of the Act have been ratified. Rules of the Act were published in the official Gazette on 1st April 2009 and amended in 2017

The first time concept of Limited liability Partnership was endorsed in the 7th law commission of india 1957. It had been suggested that partnership with limited liability should be imposed in india via seperate law or via current partnership act . However it was not considered at that time .

In India as in many other jurisdictions, an LLP is different from a Limited Partnership. An LLP operates like a limited partnership, but in an LLP, each member is protected from personal liability, except to the extent of their capital contribution in the LLP .
Other Benefits Of Limited Liability Partnership (llp)
  • In India, for all purposes of taxation (service tax or any other stipulated tax payment), an LLP is treated like any other Partnership firm.
  • Provisions have been made for corporate actions like mergers and acquisitions.
  • The Act also provides rules for Limited Partnerships
  • The Registrar of Companies (RoC) shall register and control LLPs too.

Characteristics Of LLP Registration

  • Separate legal entity: Like a company, LLP also has a separate legal entity. So the partners and the limited liability partnership (LLP) in are distinct from each other. This is like a company where partners are different from the company.
  • No requirement of minimum capital: In the case of companies there should be a minimum amount of capital that should be brought by the members or owners who want to form it. But to start an limited liability partnership (LLP) there is no requirement of minimum capital.
  • Minimum number of members: To start a limited liability partnership at least two members are required initially. However, there is no limit on the maximum number of partners.
  • No requirement of compulsory audit: All the companies, whether private or public, irrespective of their share capital, are required to get their accounts audited. But in case of limited liability partnership (LLP), there is no such mandatory requirement. A limited liability partnership is required to get the audit done only if:
  • Benifits Of Limited Liability Partnership (LLP)

    Easy Organization

    It is more flexible to organize the internal structure of limited liability partnership (LLP). Comparatively, it is complex to organize the internal structure of a company.Since limited liability partnership (LLP) Act 2008 gives the partners of LLP the at most freedom to manage it's own affairs . Partners decide the way they wan't o run and manage the LLP, in the form of LLP Agreement .It gives liberty to the partners to manage the LLP as per their will an Fancies

    Seperate Legal Entity

    limited liability partnership (LLP) is a seperate legal entity and a real person by law in which all the assets is vested and by which it is controlled,managed, and disposed off. Furthermore, one partner is not responsible or liable for another partner’s misconduct or negligence

    Taxation Benifits

    limited liability partnership (LLP) is a seperate legal entity and a real person by law in which all the assets is vested and by which it is controlled,managed, and disposed off. Furthermore, one partner is not responsible or liable for another partner’s misconduct or negligence

    Benifits Of LLP

    limited liability partnership (LLP) has major benifits in Taxation as compared to a company because for all purpose of tax limited liability partnership (LLP) is treated like any other partnership. Also limited liability partnership (LLP) are not subjected to Dividend Distribution Tax as compared to company , so there will not be any tax while you distribute profit to your partners

    Limited Liability

    The most Considerable Benifits of limited liability partnership (LLP) is That liability of the Partner are limitted to the extent of their contribution in the limited liability partnership (LLP). Unlike partnership and Proprietorship in a LLP liability of the members in respect of the LLP's debts is limitted

    Flexible Role Of Partners In LLP

    An limited liability partnership (LLP) has extremely flexible management roles for the partners and Subscribers. The roles that are defined in the LLP agreement that the partners draft themselves. Under the structure, each partner has the right to manage the LLP and have the right to choose how much management they want. Thus, partners can have a very active role or even act as a silent in the LLP.

    LLP Are Easy To Form

    State laws provide a clear structured process for Limited Liability Partnership (LLP) Registration. Thus, Limited Liability partnership (LLP) are relatively easy to form. Generally, it requires the partners to fill out a llp registration form and file it with the local secretary of state. Nonetheless, the llp registration may require the partners to put in writing their roles, responsibilities, financial contributions, and debts distributions.

    Disadvantage of Limited Liability Partnership (llp)

    Any act of the partner without the other partner may bind the Limited Liability Partnershi(LLP).
    LLP cannot raise money from the public.
    Angel investors and venture capital firms generally prefer not to invest in LLP . Private Limited is preferred over LLP

    Frequently Asked Question ?

    What are the restrictions in respect of minimum and maximum number of partners in an LLP?

    A minimum of two partners will be required for formation of an LLP. There will not be any limit to the maximum number of partners.

    Whether the LLP Act is applicable to any specific services like professional services regulated by Statutes ?

    No. Any two or more persons associating for carrying on a lawful business with a view to profit may set up an LLP.

    In the light of various inputs received by this Ministry for applicability of the LLP form to small entities and venture capital funded enterprises, it is proposed that the framework should not be restricted to professional services alone as was earlier recommended by Naresh Chandra Committee. Accordingly, the LLP Act does not restrict the benefit of LLP structure to certain classes of professionals only.

    What are the qualifications for becoming a partner?

    Any individual or body corporate may be a partner in a LLP. However an individual shall not be capable of becoming a partner of a LLP, if

  • he has been found to be of unsound mind by a Court of competent jurisdiction and the finding is in force
  • he is an undischarged insolvent; or
  • he has applied to be adjudicated as an insolvent and his application is pending.
  • Who Can be a "Designated Partner"?

    Every LLP shall be required to have atleast two Designated Partners who shall be individuals and at least one of the Designated Partner shall be a resident of India. In case of a LLP in which all the partners are bodies corporate or in which one or more partners are individuals and bodies corporate, at least two individuals who are partners of such LLP or nominees of such bodies corporate shall act as designated partners.

    Whether there would be any requirement of ‘identification number’ of Designated Partner? Whether Designated Partners would be subject to any other condition/requirement before they are appointed as such?

    Every Designated 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. Enabling provisions have been made to prescribe under rules conditions, which would have to be fulfilled by an individual who is eligible to be appointed as a ‘designated-partner’.

    What is the manner in which a partner of an LLP can bring his contribution? How will it be recorded/disclosed in the accounts?

    Every Designated 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. Enabling provisions have been made to prescribe under rules conditions, which would have to be fulfilled by an individual who is eligible to be appointed as a ‘designated-partner’.

    Nature & extent of liability of a partner of an LLP?

    Every partner of an LLP would be, for the purpose of the business of the LLP, an agent of the LLP but not of the other partners. Liability of partners shall be limited except in case of unauthorized acts, fraud and negligence. But a partner shall not be personally liable for the wrongful acts or omission of any other partner. An obligation of the limited liability partnership whether arising in contract or otherwise, is solely the obligation of the limited liability partnership. The liabilities of LLP shall be met out of the property of the LLP.

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