LIMITED LIABILITY PARTNERSHIP
@ Rs 5999 All Inclusive No Hidden Charge
*Stamp Duty Extra For Madhya Pradesh, Punjab & Kerala
A Limited Liability Partnership is a combination of Partnership firm and Company. An entirely new concept of business.
WHAT IS LIMITED LIABILITY PARTNERSHIP?
Limited Liability Partnership is a legal entity registered with Registrar of Companies under Limited Liability Partnership Act, 2008. This entity is regulated by the Ministry of Corporate Affairs. It is a combination of a Partnership firm and a company. LLP is a partnership but it enjoys almost all the features of the company, and these are:
- Separate Legal Entity: The LLP has a separate and distinct entity from its partners as the company has from its shareholders. The partners and LLP are different from each other, the identity of the LLP doesn’t get affected by the change of the partners.
- Limited Liabilities: All the partners of the LLP are having limited liabilities whereas in the partnership firm all the partners having unlimited The partners are not personally liable for any debt or loss incurred by the LLP. They are only responsible for such amount which they agree to contribute as mentioned in the LLP agreement.
- On Its Name: The LLP can buy or sell the property on its name and also sue or be sued by any person on its name and also get entered into any contract or agreement with any other person under its name.
The LLP is the most popular option for the professionals for conducting their business and it also a good choice for those who are involving in the business of consultancy. LLP have few compliances to follow as compared to other companies. Under Indian Partnership Act, 1932 it is optional to register the partnership firm, but if any person wants to run LLP, then he shall have to take a certificate of registration from the Registrar and also have to register the LLP agreement. All the business details and profit & loss sharing ratio amount of capital invested shall mention in the LLP agreement.
What Do You Get In Limited Liability Partnership
Documents Required For LLP Registration
Process Of Limited Liability Partnership Registration
- Submit Documents
- Name Approval
- Digital Signature
- Documents Preparation
- LLP Incorporation
- Draft LLP Agreement
You need to submit all the required documents.
We will verify all the documents and then apply for the name approval through the RUN application form. In one form we can apply for 4 names. Name of the company is subject to Government approval.
After the name approval of the company, we will apply for the Digital Signature. For Digital Signature Video and Mobile Verification will be required.
After name approval and digital signature we will prepare all your required documents like FORM-9 and subscribers sheet and all other required documents and will submit it to the registrar of companies in prescribed form i.e. “FiLLiP”.
Once all the documents submitted are duly verified by Registrar of Companies, the approval is given and the Certificate of Incorporation is sent to you on your email id.
After receiving the Certificate of Incorporation we will draft your LLP agreement as per the incorporation condition and after that, we will file the Initial LLP Agreement to the Registrar of Companies for its approval.
More About Limited Liability Partnership
PARTNERS: A minimum of two designated partner is required to register the LLP. Both the partner shall have Designated Partner Identification Number (DPIN). There is no maximum limit for the partners and designated partners, but every person who wants to appoint as a designated partner in the LLP must have the DPIN. In LLP both partners and designated partners can take part in the LLP but for LLP registration designated partners are required.
NAME: The name of the LLP must have the word “LLP” at the end of the name. For example; “ABC marketing LLP” here the ABC denotes the name of the company and marketing signifies that the LLP is indulging in the business of marketing and LLP word shows the business format.
REGISTERED OFFICE: The LLP must have a registered office, and it should mention in the LLP agreement. If any of the partner or designated partner wants to change the registered office then firstly he will have to take consent of all, or from the majority partners or designated partners of the LLP and after seeking the approval he shall have to intimate about such changes to the registrar of the companies.
CAPITAL: There is no minimum capital requirement for forming the LLP. The partners and designated partners can start their LLP by investing any amount of money with any ratio. The LLP can pay the interest on their invested capital at any rate as fixed by the designated partner by taking consent of all partners and designated partners.
- The LLP is a partnership entity with company’s features. It has the advantages of both the business formats. As a company, the LLP is also a separate legal entity and both LLP and partners are different from each other.
- All the partners and designated partners have limited liability. They are liable to contribute only that amount which they agree to provide as per LLP agreement and except that amount they won't be liable for any debt owned by LLP on its name. They are even not liable for the act done by any other partner, they are only responsible for their actions which they have done under their name.
- The LLP formation is straightforward and very cheap. Only a few forms are required to submit to the registrar of companies, and now there is no minimum capital requirement hence no vast amount is needed to invest in the LLP.
- There is no maximum limit on the partners and designated partners, but all the designated partners must have the DPIN before their appointment, the intimation shall be made to the registrar of the company, and after adding such partner, the LLP agreement shall amend such change and that amended agreement shall be submitted to the ROC.
- The legal identity of the LLP doesn't get affected by the change in the partners and designated partners. Even the death of the partners doesn't affect the LLP but in an ordinary partnership firm if the partner dies the partnership firm gets dissolved.
- The registration of partnership firm is not compulsory the partners may not register their partnership firm they can run their firm only by mutual consent, but for running the LLP firstly it shall be registered by the registrar. Due to registration, the LLP has the legal identity.
- The LLP is easily transferable. As the LLP is distinct from its partners and it is also a separate entity, therefore, it is easy to transfer the LLP.
- There is very less compliance which the LLP needs to follow as there is no requirement of the board meeting and general meeting as compared to the company. The LLP only requires to submit the half-yearly and annual report to the registrar at the end of half financial year and the end of the financial year respectively.
- The LLP is restricted to raise fund from general public whether by issuing securities or by debt. The LLP can get the funding whether by its partners or through the banks in the form of loan or borrowing.
- The LLP cannot raise funds from the angel investors or venture capitals by issuing shares as the LLP doesn’t have the share capital it has a sum of money which is invested by the partners and for which the LLP distributes a specified interest.
- The partner cannot take any significant action without the consent of all or majority partners in the LLP. One partner is always bond to seek the approval of other partners for doing any activity.
- LLP doesn't have more creditability as compared to other companies. People always prefer the company for investing the money and running their business under the name of either private limited company or public limited company. As it is easy to attract the investor and business expansion is always easy in the company as compared to LLP.
- The tax liability is flat 30% on the LLP. Like any other business entity, the LLP also has to pay a 30% tax on the income earned by the LLP during the financial year although there is a particular tax exemption for the LLP like they are exempted from paying dividend distribution tax and minimum alternative tax.
- If the LLP makes any changes in the LLP, even in the partners then every time it shall have to amend the LLP agreement accordingly, and such amended LLP agreement should be submitted to the ROC. Every minor change in the LLP alters the LLP agreement.
- If the LLP fails to comply with the mandatory provisions made under the LLP Act, 2008 it will be liable to attract the penalties. So, it is essential to take care of all the compliances and provisions of the LLP
Let our experience be your guide