Limited Liability Partnership


WHAT IS LLP

LLP means limited liability partnership (LLP). It is similar to a general partnership, except the partners are not personally liable for negligent acts conducted by other partners or employees not under their supervision. This is different from a general partnership, in which each partner is liable for the debts and obligations of the business as well as the malpractice of any other partner. Income taxes in an LLP are passed through the business and reflected on the partners individual tax returns. Because of the limited liability of each partner and pass-through tax status, LLPs are a very popular business structure.


BENEFITS OF LLP

  • Separate legal entity
  • Limited Liability to partners
  • Simple process of Registration
  • Perpetual existence irrespective of changes in partners
  • No requirement of audit of accounts until turnover reaches Rs.40 lakhs or Contribution Rs.25 lakhs
  • Less tax as compared to company
  • No requirement of minimum capital contribution
  • No restrictions as to maximum number of partners
  • Two person can form LLP.
  • WHAT IS OUR ROLE

    We help our clients in LLP Registration process.

    PROCEDURE INVOLVED IN LLP REGISTRATION


    1. DPIN and DSC - Apply DPIN (Designated Partner Identification Number) for every proposed Designated Partners (Minimum -2). At least one Designated Partner should have a valid Digital Signature.
    2. Apply for Name - Selection of business name is crucial for the image of an organisation. Select a name which reflects the planned business. Ensure selected name satisfy LLP Name Guidelines and file an online application.
    3. Filing of LLP Registration Documents - After the approval of name LLP registration documents are filed. On scrutiny of documents filed, Registrar of LLP will register the LLP and certificate of Registration will be issued.
    4. Documentation of and filing of LLP agreement and Consent of Designated Partners - With in 30 days from the date of Incorporation of LLP, partners of LLP have to execute the LLP agreement and same has to be filed with Registrar of LLP in Form 3 and the consent to act as Designated Partner/Partner has to be filed in Form 4.