For step by step guide to register your business under Limited Liability Partnership call our experts, we will help to make your process of registration smooth.
LLP is the best alternative to Normal or traditional partnership because it has the concept of Limited Liability & more flexibility. It can be started easily without any hurdles and with at least 2 legal persons (natural or artificial).
Nowadays, Partnership Firms have become one of the most common structures for the business, in which two or more persons collaborate to do business together.
Based on nature, Partnerships are divided into two types:
a) General Partnership Firm, which has unlimited liability of Partners
b) Limited Liability Partnership
Owing to our in-depth industry experience and knowledge of this domain, we are reckoned in providing Limited Liability Partnership registration. It is a type of business form which provides the benefit of limited personal liability to each of the partners. This is recognized under the Limited Liability Partnership Act, 2008. In a Limited Liability Partnership, for the financial obligations of the business, all the partners have limited personal liability. Under LLP, all partners are only liable to pay a certain amount, which does not require them to sell their personal assets.
Loans, investments, borrowings have always been the parts and parcels of any kind of operating business, in the case of LLP, liability is limited, as it can be concluded from the name of this business structure, here personal assets are completely secure and safe, therefore, there is no liability to the creditors above Capital invested. It is one of the most suitable in nature for startups and common small businesses because of less compliance like no need for Statutory Audit.
One of the main benefits of LLP is that the process of forming an LLP is easy and not time-consuming like that of a company
As mentioned above, the partners have limited liability which means they are not liable to pay the debts of the company from their personal assets. No partner is often held liable for the conduct of other partners.
According to the provisions of the Act, the LLP will not be winded up in case of death, retirement, or insolvency of a partner. The lifetime of the LLP isn't suffering from an equivalent.
The transfer of ownership is easy, as it is easy to admit or leave a partner. There are not any restrictions upon joining and leaving of partners in LLP.
The rate of taxation is less than that of a company. Moreover, the tax is levied on the LLP and therefore the partners would be exempted from the tax. The tax returns must be signed and verified by the partner or partners because the case could also be.
Every business has to appoint an auditor to keep a check on internal management and accounts. The audits aren't mandatory apart from the exceptions mentioned above.
PAN CARD of 2 persons is mandatorily required and in case of the foreign national valid passport also requires.
Any proof of identity like Adhaar Card/ voter id card/driving license of all 2 persons is mandatory required
The client has to be provided at least two Company names to apply for name approval.
All the 2 persons must have their photos, mobile numbers, valid emails, and latest bank statements (must not be older than 2 months).
The client has to provide Office Address proof like Rent Agreement/Property papers with the latest electricity bill.
*In case of NRI or Foreign National, documents of director (s) must be notarized.
There must be a minimum of two individuals to be appointed as Designated Partners, out of which one must be an Indian resident. Also, there's a pre-requisite to possess an address of a business in India so on register it as a registered office for your LLP.
The PAN and TAN used for the LLP formation are often applied once the Certificate of Incorporation of the LLP is issued. The physical copy of the PAN is going to be received at the Registered Office once an equivalent is dispatched by the tax Department.
No. there's no minimum amount prescribed to make a LLP in India. It are often started with any amount of capital demanded by the business. Although there's no minimum requirement, every partner must make a contribution financially to make LLP. The amount of capital contribution is disclosed in the LLP Agreement and the amount of stamp duty is decided by the total contribution amount.
LLP Agreement is an agreement that is executed by all partners while LLP incorporation in India. The agreement consists of all the legal clauses related to business, including the rights, roles, duties, and responsibilities of partners in LLP. The agreement must be filed within 30 days of the issuance of a certificate of incorporation. Failure to try to so will charge a further fee of ₹ 100 per day till the date of filing.
Yes, a LLP registered in India can keep it up quite one business subject to their relevancy. The activities must be related or within the same field itself. Unrelated activities like Interior Designing and Legal consultancy can't be carried under an equivalent LLP. The business activities are mentioned within the agreement and must be approved by ROC.
Yes, an existing partnership firm are often converted into LLP. LLP is the most beneficial in comparison to a normal partnership firm.
The amount of capital contribution is taken into consideration to choose the stamp tax on the LLP Agreement in India. The rate of stamp tax varies from State to State. The State Stamp Act is going to be applied counting on where the registered office is situated. Further, the Notary on the Agreement is mandatory.
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