Limited Liability Partnership
Establishing an LLP has never been easier. So, register for a Limited Liability Partnership with Legaltoast at the lowest possible cost and in the least possible time. To avail our services, we charge 499/- as an advance or security payment.
LIMITED LIABILITY PARTNERSHIP REGISTRATION
Mainly different kinds of budding entrepreneurs, Law Firms, Auditing Firms, Financial Advisory Services, Real Estate Agencies, Business Consultancies, and Small and Medium-Sized Businesses opt for a Limited Liability Partnership. The idea of a Limited Liability Partnership is quite convenient which is widely known and accepted. Above all, it comes with the ability to protect the personal assets if in case of any dispute and also give several tax benefits.
FORMATION OF LIMITED LIABILITY PARTNERSHIP
To increase the authenticity and genuineness of your business, getting your company registered is mandatory. A lot of perks come along by Registering a company like,
- It works as a shield that protects from other risks and losses and also from personal liability.
- Efficiently draws more customers Secures bank credits and good investment from solid investors.
- Comes with a great ability towards liability protection which protects your company’s assets
- Greater capital contribution and greater stability
- Enhances the potential to develop big and expand
- You will be getting a Zero Balance Current Account – sponsored by DBS Bank *
BENEFITS OF LIMITED LIABILITY PARTNERSHIP REGISTRATION
In India, the benefits of a Limited Liability Partnership (LLP) Registration is mentioned below:
- Limited Liability: The word “limited liability” itself indicates a liability that is limited to the range of capital contributed by each and every member. But this also implies that the personal assets of the partners will not be seized or taken in accounts if in any case of loss or disputes the firm incurs.
- Separate Legal Entity: A limited liability partnership firm holds a separate legal entity different from its members.
- Easy Ownership Transformation: In Limited Liability Partnership the ownership transfer is done easily compare to other kinds of business like a private limited company.
- Corporate Body: According to Section 3 of the Limited LLP Act, 2008, a firm should be considered as a corporate body to obtaining LLP registration.
- Perpetual Succession: A Limited Liability Partnership (LLP) has a feature of perpetual succession, which indicates the admission of a new member and departure of an existing member will not hold any effect on the existence of an LLP firm.
- No Minimum Capital Requirement: Two people without any amount in their pocket can easily start an LLP firm that, as no minimum capital requirement has been mentioned under the act regarding the incorporation of an LLP firm.
- LLP Agreement: Limited Liability Partnership agreement is a printed stamp paper rightfully signed by all the partners. This agreement outlines the roles, responsibilities, and duties of all partners working in the firm. While decision-making the Limited Liability Partnership agreement plays an important role.
- No Audit Requirement: One more vital advantage affixed with the idea of Limited Liability Partnership is that there no audit requirement. Still, In two conditions audit is required which are: a. When the annual turnover surpasses the amount of Rs 40 lakhs or b. when the capital contribution surpasses Rs 25 lakhs.
- Simple Registration Process: By introducing online registration MCA has simplified the process of obtaining LLP Registration. Through which, all the needed documents can now be filed electronically on the MCA Portal.
- Easy to wind up: In LLP, not just incorporative the firm but also the procedure of winding up is just a handful of a task. Hence, an LLP firm can easily be wound up in comparison to a Private Limited Company.
MINIMUM REQUIREMENTS FOR THE REGISTRATION OF AN LLP FIRM
To incorporate an LLP Firm the following listed requirements are to adhere:
- At least two Designated Partners
- At least one partner should be an Indian Citizen, Out of all the designated partners.
- All the designated partners need to have DIPN (Designated Partner Identification Number)
- All the Designated Partners need to have DSC (Digital Signature Certificate)
- To obtain LLP Registration Address Proof of the Registered Office is a must
REQUIRED DOCUMENTS FOR REGISTRATION OF AN LLP
During The Time Of Incorporation LLP The Partner Need To Provide The Following Documents:
- All partner’s PAN Card, Aadhar Card, Voter ID, Driving License
- Partner’s Address Proof
- Partner’s Residence Proof
- Partners Photograph
- Passport (if in case any of the partners is a Foreign National or an NRI)
Documents Required For Limited Liability Partnership:
- Registered Office Address Proof
- DSC (Digital Signature Certificate)
- If the Registered Office is on rent then NOC (No-Objection Certificate) from the Landlord.
- Utility Bill in the form of electricity bill, a water tax receipt (which should not be older than two months)
procedure for Limited Liability Partnership
Note: After completing the process, you have to make the whole payment of the amount.
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FAQS Limited Liability Partnership
The advantages of the LLP Firm are mentioned below:
- Separate Legal Entity
- Limited Liability
- Easy Ownership Transformation
- Involves Low Cost of Incorporation
- No Audit Requirement
- Adherence to Less Compliances and Regulations
- No Audit Requirement
- No Set Limit on the Minimum Capital Contribution
The disadvantages or the shortcomings an LLP Firm are listed below:
- Inability to raise Venture Capitalist Funding
- The pressure of Higher Penalty on Non-Compliance
- Huge Income Tax Rate
- Incompetent to have Equity Investment