Setupfilings

Limited Liability partnership (LLP)

 

Contact Us

Limited Liability partnership (LLP) Registration

The limited liability partnership (LLP) Registration has become the most preferable form of organization Among young entrepreneurs due to its double benefit of Partnership firm and Company into one form of organization. LLP came into existence after January 2009. And Governed under the Limited liability Partnership Act 2009. And the best part of LLP Registration is one partner is not responsible for misconduct of other partnership.

Advantages of Limited liability Partnership (LLP) Registration

One of the most important benefit of Limited liability partnership (LLP) Registration is Liability of each partnership into partnership firm extent up to his/her capital contribution only and it is totally opposite to sole proprietorship firm where the individual Assets or proprietor is always at risk.

LLP Registration has separate existence from its partners. It means LLP has some of the same right in the law as person. LLP has right to enter into any contract, sue and can be sued by other, It can also own property.

LLP Can be formed with any minimum capital contribution as opposite to private limited company that has Requirement of minimum 1 Lakh Authorized capital contribution.

The Cost of formation for Limited Liability partnership (LLP) Registration is very minimum as compare to private limited company registration. And it can be formed easily with basic documents Requirement.

Limited liability partnership (LLP) Act 2008, Gives LLP the most Freedom to manage its own affairs. Partners by their mutual understanding can decide how they want to manage the LLP firm, it can also be mentioned in LLP Agreement.

Another best benefit of LLP registration is taxation part of LLP. Limited liability partnership (LLP)are taxed lower as compared to company. Even LLP are not subject to dividend distribution to tax as compared to company so there will not tax when you distribute profits among partners.

Disadvantages of Limited Liability Partnership (LLP) Registration

If the partner wants to transfer his or her ownership right then he/she can transfer the ownership right by obtaining consent of all partners. An Supplementary agreement can be made to complete the entire process.

Disclosing the details of LLP Company publically through filings Annual statement of accounts & solvency and annual return with registrar each year make the data publically available for other to see and download just by paying nominal amount. Income tax return for LLP Company should be also filled to income tax department every financial year.

For Registering Limited Liability Partnership (LLP) must have at least two partners. If any one partner chooses to leave the LLP then it has to be dissolved or any other partner should be added in the LLP firm.

Overseas Indian/Foreign national who wish to incorporate a Limited liability partnership (LLP) In India shall have at least one partner who is an India citizen. Wherein two foreigners partnership cannot incorporate limited liability partnership (LLP) without having one resident Indian partner along with them.

Limited liability partnership (LLP) are limited by specific state government regulation due to which they are not given due to recognition in every state as a business structure.

The cost of Non-compliance of forms, such as e-forms is very high which would lead to high penalty which increases day by day until e-forms doesn’t get filled.

S. No.Factors of comparisonPrivate limited companyLimited liability partnership
1.Maximum number of members200None
2.Requirements for complianceAnnual return filling  broad meetings and general meetingsAnnual return filling and Statement of Account & Solvency.
3.AuditCompulsoryOnly if contribution more than Rs. 25 lakhs or turnover exceeds Rs. 40 Lakhs
4.Lower cost of FormationMyOnlineCA.in charges – Rs. 4000
Legal charges – Rs. 12,000
MyOnlineCA.in charges- Rs. 3000
Legal Charges- Rs. 7000
5.ConversionCan be converted to LLPCannot be converted into a company
6.ProcedureObtain DSC (Digital Signature Certificate) Obtain DIN (Directors Identification Number) Name Approval Filing for Incorporation
Obtain DSC (Digital Signature Certificate) Obtain DPIN (Designated Partner Identification Number) Name Approval Filing for Incorporation File LLP Agreement
7.Time for registration15-20 days10-15 days
8.Dividend distribution taxApplyNot apply

Documents Required for Limited liability Partnership (LLP)

Limited liability Partnership (LLP) Registration will have to provide the below mentioned Documents.

The Documents Required for Registered office premises.

In Case if Property is rented

Procedure for Incorporation

basic

1 DSC 2 Years validity

2 DIN Number for Director

Name Approval for company

Authorized capital of 5 Lakh

Incorporation fees

PAN And TAN of Company

Incorporation KIT

Standard

1 DSC 2 Years validity

2 DIN Number for Director

Name Approval for company

Authorized capital of 5 Lakh

Incorporation fees

PAN And TAN of Company

Incorporation KIT

Goods And Service Tax (GST)

Udyam Registration

Premium

1 DSC 2 Years validity

1 DIN Number for Director

Name Approval for company

Authorized capital of 5 Lakh

Incorporation fees

PAN And TAN of Company

Incorporation KIT

Goods And Service Tax (GST)

Udyam Registration

Import Export code (IEC)

ISO Certification 3 Years Validity