LIMITED LIABILITY PARTNERSHIP REGISTRATION
Ideal for firms with multiple partners and looking for less Compliance burden
Ideal for firms with multiple partners and looking for less Compliance burden
LLP Incorporation
STEPS TO INCORPORATE A LIMITED LIMITED PARTNERSHIP
LIST OF DOCUMENTS REQUIRED FOR INCORPORATION
Identity Proofs
PAN, Aadhar/Passport, Photograph
Address Proof for LLP
Utility Bill of the Place of Business (Not older than 2 months)
Rent Agreement/NOC for allowing usage of the place
Address Proofs for Partners
Bank Statement/Utility Bill of Residential Address
Advantages of Limited Liability Partnership
A separate and distinct legal structure
Such entities provide distinction between ownership and function. It creates a separate legal structure both in terms of taxation and liability.
Less Compliance Burden
LLPs have less compliance burden compare to other entities. LLPs don't have to get the company audited if there turnover is less than 40 lacs for the financial year. Moreover, they just have to file two Annual Returns ( Form 8 and Form 11) every year.
Limited Liability
The liability of the partners is limited to their subscribed capital in the LLPs.
FREQUENTLY ASKED QUESTIONS
What is a Limited Liability Partnership?
The Limited Liability Partnership is a new business structure that has been established by an Act of the Parliament. In a Limited Liability Partnership, there is flexibility in terms of ownership and control as well as limited liability and a preferential tax treatment for profits and transfer of assets. The liability protection that this form of entity provides limits the liability of each partner to the extent of his/her investment in the firm. It has provisions of legally protecting other partners from the illegal actions of one partner.
What are the requirements for registering a Limited Liability Partnership?
A minimum of 2 Partners are required to incorporate a LLP. One of them has to be Indian Resident.
What is LLP Agreement
LLP Agreement is a document consisting of policies that will be guiding the LLP over its course of business. It also mentions the contributions by the Partners along with their duties.
Can LLP be converted into a Private Limited Company?
Yes. LLP can be converted into Private Limited Company by filing of Form URC-1.
What are the annual Compliances for LLP?
LLP has to mandatory file Form 11 (30th May) and Form 8 (31st October) every year. If not filed, penalty of Rs 100 per day is charged by ROC for each day of delay.
The LLP has to also get itself audited by Practicing CA if its turnover exceeds Rs 40 lacs annually