A Limited Liability Partnership, popularly known as LLP is managed as per the LLP Agreement. It combines the advantages of both the Company and a Partnership firm into a single form of organization. In LLP one partner is not responsible or liable for another partner’s misconduct or negligence, this is an important difference from that of a unlimited partnership. However, unlike shareholders, the partners have the right to manage the business directly. An LLP also limits the personal liability of a partner for the errors, omissions, incompetence, or negligence of the LLP’s employees or other agents.
Limited Liability Partnership
Advantages Of Limited Liability Partnership
Separate Legal Entity
A legal entity like a company has a separate identity from its owners or shareholders. Therefore a LLP form of organization has wide legal capacity and can own property and also enter into agreements just like a Company.
Limited Liability
Limited Liability implies that the owners or shareholders of the company are not personally liable to pay the business debts. Unlike proprietorships and partnerships, in a LLP the liability of the members in respect of the LLP’s debts is limited.
No mandatory requirement of Audit
A LLP has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved. The best part of perpetual existence is that a Limited Liability Partnership will continue to exist, no matter any partners and officers join or resign
Perpetual Existence
Audit requirement only in case of contributions exceeding Rs. 25 lakh or turnover exceeding Rs. 40 lakh.
Process for LLP Registration
What you do
You just need to fill our simple questionnaire regarding the basic details of partners and business activities.
What We do
LLP registering In India need to file certain documents with the Registrar of Companies (ROC). We will prepare and file the requisite documents for incorporation of the LLP.
What you get
You will receive the LLP COI and LLP Agreement within 15 working days.
Package
Basic
₹74,999 Select this planDSC of the Two Partners,
DPIN of the Two Partners,
Filing of Forms with ROC,
Standard Pack
₹10,999 Select this PlanBasic Pack
+
One Financial Year TDS Return filing
+
TDS Consultancy
Premium Pack
₹19,999 Select this PlanStandard pack
+
Annual Filing of LLP
+
Tax Consultancy & ITR filing of LLP
+
Service Tax Return Filing
Advantages Of Partnership Firm
- With more than one owner, the ability to raise funds may be increased, both because two or more partners may be able to contribute more funds and because their borrowing capacity may be greater.
- Prospective employees may be attracted to the business if given the incentive to become a partner.
- A partnership may benefit from the combination of complementary skills of two or more people. There is a wider pool of knowledge, skills and contacts.
- Partnerships can be cost-effective as each partner specializes in certain aspects of their business.
- Partnerships provide moral support and will allow for more creative brainstorming.
Frequently Asked Questions
Can a Non-Citizen be a partner in an Indian firm?
The Partnership Act does not prohibit a non-citizen from joining an Indian partnership firm, subject to necessary clearances and permissions from satisfactory authorities in this regard.
Is a deed of partnership necessary?
Partnership Deed can be written or in oral. But, it is always advisable to have a written partnership deed.
Can a Hindu Undivided Family become a partner of a firm?
A HUF is not a legal person and so cannot enter into partnership with either an individual or another HUF.
What are the requirements for registration of a partnership firm?
The following information is essential:
- Name of the partnership firm.
- Place of business of the firm.
- Names of any other places where the firm carries on business.
- Date of joining of each partner.
- Name and permanent address of the partners.
- Duration of the firm.
The statement must be signed by all partners or by their agents specially authorised in this behalf.
What is the maximum number of partners in a banking and non banking partnership firm as per new companies act, 2013?
Earlier the Maximum Limit of Partners/Members was:-
In case of banking business – 10
In case of any other business – 20
Now the same has been simplified and the limit has been raised to 50 Partners/Members for any business.
WHO MUST OBTAIN VAT REGISTRATIONS??
In Delhi VAT Registration mandatory for Manufacturers/Traders/Exporters/Dealers and also for Online traders.
WHEN SHOULD VAT RETURN BE FILED?
Sales Tax Returns are to be filed Quarterly by the 20 th July, October, January and April for the quarter ending June, September, December and March, respectively. However hard copy of vat return is required to be filled on or before 27 th of relevant quarter.
HOW DO I SEND THE DOCUMENTS FOR RETURN FILING?
You can scan and upload your documents to the My Account page.