LLP is one of the simple and easiest business form that give the benefit if limited liability to its partners with great flexibility in doing partnership business in INDIA. In other words, it offers advantages of both words by bringing simplicity in management akin to partnership firms and scope of expansion like that a company. The biggest advantage of LLP form of business over a Pvt Ltd Company is in the fact that there is less compliance requirement in comparison to a Company. Limited Liability Partnership (LLP) is to provide a form of business entity that is simple to maintain while providing limited liability to the owners.
Two people are needed to register the LLP in India. who shall act as the designated partners of the LLP. However, there is no limit on maximum partners. No Minimum Capital: Capital in case of LLP is depending on the need of the business and contribution to partnership by partners. The Stamp Duty on the deed is based on the amount of capital.
One designated partner of the LLP must be resident in India. A person is said to be resident if he or she stays in India for at least 182 days during the preceding financial or if he stays in India for 60 days in one year and cumulatively for 365 days in the past four years irrespective of their citizenship.
The LLP can be incorporated with any amount of capital as per your business requirements, there is no maximum limit on the capital which can be invested in the LLP. However, the minimum capital can not be less than Rs. 10,000/-
The name must be unique and acceptable, as defined by the LLP Act, 2008. The name cannot be the same or similar to an existing company or LLP or trademark in the same industry or field.
This process is start with documentation of the proposed designated partner/partners and relating to the registered address of the LLP. Be aware that documents are update and correct. The information of related documents is provided above for your reference.
The Name of the LLP should be cross-checked with the ROC and the trademark registry to avoid any infringement of someone else Trademark or Other Company /LLP Name. The selection of a proper name should be the starting point.
Every Person who is intending to be appointed as designated partner of an LLP shall make an application for a Digital Signature Certificate (DSC). The filing process starts with the issue of a digital signature for all the partners of the LLP.
The application for the Name approval of LLP is submitted in Form Form RUN-LLP. It is a web-based application, where two names in order of preference can be filed with a note on the significance of the Name and the business activities.
The final stage for the LLP registration is the Issue of Certificate of Incorporation for the LLP after the verification of the application for LLP Registration is filed in Form Form FILIP. The issuance of the registration certificate of LLP is the conclusive proof of the registration of the LLP by ROC.
After Limited Liability Partnership firm need to prepare LLP Agreement. LLP Agreement has major details of LLP. Such as Profit sharing ration, Capital Contribution, roles & responsibility of partners etc. This LLP Agreement need to be filed to MCA by using LLP Form 3. Within 30 days of LLP Registration File form. For Non Filing Per day Late fees is Rs.100/-. Pursuant to Rule 21(1) & (2) of Limited Liability Partnership Rules, 2009 every LLP need to file Form 3.
LLP is an alternative corporate business form that gives the benefits of limited liability of a COMPANY and the flexibility of a PARTNERSHIP. Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.
Section 2(e) of the LLP Act, Specifically defines the word "Business" which says [ Business includes every trade, profession, service and occupation ] The definition specifically exclude Manufacturing, Production etc. hence you are advised to pursue only those activities which are not in the nature of Manufacture or Production as such.
Under “traditional partnership firm”, every partner is liable, jointly with all the other partners and also severally for all acts of the firm done while he is a partner. Under LLP structure, liability of the partner is limited to his agreed contribution. Further, no partner is liable on account of the independent or un-authorized acts of other partners, and registered with Ministry of Corporate Affairs just like company.
At least two partners are required for LLP registration. The maximum partners can be 200. If you are the sole owner. You can register as a One Person Company.
Yes, but only he has assigned with DIN/DPIN. However, at least one designated partner in LLP must be a Resident of India; the foreign director can also be a majority shareholder in the company.
You can start a Limited Liability Partnership with any amount of capital. There is no requirement to show proof of capital invested during the incorporation process. Partner's contribution may consist of both tangible and/or intangible property and any other benefit to the LLP.
For incorporation of an LLP under The Limited Liability Partnership Act, 2009, anyone from below mentioned list of the document is acceptable as Identity Proof of the partner or designated partner of the proposed LLP.
A Limited Liability Partnership is incorporated with a physical address to be declared as the registered office of the newly registered LLP. Following are the list of the document which is acceptable as proof of premises where the registered office of the LLP is situated. The premises proof should not be older than two months.
Yes, an existing partnership firm or a company that is unlisted can be converted into LLP. There are many advantages of converting a partnership firm into a LLP; however, the same doesn't apply for the conversion of a Company to a LLP.
A basic differences between an LLP and a joint stock company lies in that the internal governance structure of a company is regulated by statute (i.e. Companies Act, 2013) whereas for an LLP it would be by a contractual agreement between partners. LLP will have more flexibility as compared to a company and lesser compliance requirements.