Limited Liability Partnership Firm (llp)
Limited Liability Partnership Firm
Limited Liability Partnerships, LLP is a unique and new form of business that combines the advantages of both 'Company' and 'Partnership' in a single business entity
LLP is a superior form to partnership. The partnership is often discouraged to use because of its unlimited liability feature, i.e. your personal assets may also be held up in case all the dues are not cleared. Hence, it is very risky to use this form of business. So, to overcome this problem, a most important feature of limited liability of company is added to the partnership, which results in Limited Liability Partnership.
LLP is a separate entity, which can be formed in India by a minimum of two persons Unlike a Private Limited Company, an LLP is easy to manage. It is subjected to minimal post registration compliances.
- Liability of Partners in LLP is limited to their capital contribution.
- Less compliance is needed as compared to a Public Company.
- Flexibility in business operation because partners can decide how they will individual contribute to the business operations.
- No tax is levied on a distribution of profits amongst the partners.
- No restrictions on a maximum number of partners.
WHAT IS INCLUDED IN OUR PACKAGE?
- 2 Digital Signature
- 2 DIN (Director Identification Number)
- Filing of Name Application
- Registration Certificate
- Drafting & execution of Agreement
- Stamping of Agreement
- Filing of A
EASY TO FORM
It is very easy to form LLP, as the process is very simple as compared to Companies and does not involve much formality. Compared to other forms of starting business, LLP has been found as the easiest form of incorporating a company and requires fewer hassles.
Just like a Company, LLP is also a body corporate, which means it has its own existence as compared to a partnership. LLP and its Partners are a distinct entity in the eyes of the law. An LLP is known by its own name and not by the name of its partners.
An LLP exists as a separate legal entity from its partners. Liability for repayment of debts and lawsuits incurred by the LLP lies on it and not on Partners. Forming an LLP is a good way to protect your personal assets from your company's liabilities.
EASY TRANSFERABLE OWNERSHIP
It is easy to become a Partner or leave an LLP or otherwise it is easier to transfer the ownership in accordance with the terms of the LLP Agreement. It is relatively easy to transfer the ownership of an LLP to another person as compared to other business forms.
Compared to a Private Limited Company, A Limited Liability Partnership tends to have less compliance to follow.
There is no minimum capital required to form an LLP.
There are some important advantages over the private limited company. For example, Dividend Distribution Tax and tax surcharge don't apply. Loans to partners are also not taxable as income
Limited liability partnerships offer partners flexibility in business ownership. Partners have the authority to decide how they will individually contribute to business operations.
- Minimum 2 Partners
- Minimum 2 Designated Partners
- At least 1 Partner shall be an Indian Resident
- If a body corporate is a Partner, it has to nominate a natural person as its Nominee
- The Partners and Designated Partners can be same person