Limited Liability Partnership
A Limited Liability Partnership is a corporate business vehicle that empowers entrepreneurial activity to work in adaptable and effective way by giving the advantages of constrained risk and permitting its individuals to sort out their inward structure as an association. LLP type of business is perfect for all classes of business people whether it be dealers, producers or experts. It is anything but difficult to join and oversee. LLP is more dependable and ideal than an ordinary organization firm. Restricted Liability Partnership has been presented in India by method for Limited Liability Partnership Act, 2008. It shows components of both association and partnership. In LLP, one accomplice is not capable or at risk for another accomplice's wrongdoing or carelessness dissimilar to a conventional association in which every accomplice has joint and a few obligation.
Advantages
Legal Entity
A LLP is a lawful element and a juristic individual. It has wide lawful limit and can possess property.
No Audit
No review required on the off chance that it has not as much as Rs. 40 lakhs of turnover and under Rs.25 lakhs of capital commitment.
Easy Formation
LLP works on the premise of an assention. It gives adaptability without forcing itemized lawful methods.
Dual Relationship
A man in the meantime can be a Partner, bank, supplier furthermore a representative of the LLP.
Business Continuity
An LLP has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved.
Limited Liability
Accomplices have no individual liabilities.
Easy Transferability
The responsibility for LLP can be effectively exchanged to someone else by drafting them as a Designated Partner of the LLP.
Partner Protection
In LLP, Partners not at all like association are not operators of the accomplices and accordingly they are not obligated for the individual demonstration of different accomplices.
LLP Registration Process
Constrained Liability Partnership is anything but difficult to consolidate and oversee. Least two accomplices are required to shape a LLP and there is no restriction on most extreme number of accomplices. There is no prerequisite of least capital commitment in a LLP. It ordinarily takes 15-20 days to consolidate a LLP, subject to ROC preparing time.
DSC Application
1-3 working days
DPIN
1-3 working days
LLP Registration
7-9 working days
PAN & TAN Applications
1-3 working days
Comparing Private Limited Company, LLP and OPC
Factors of Comparison
- Minimum Requirement
- Minimum Capital
- Regulator
- Compliance Requirements
- Taxation
- Credibility
- Investor Preference
- Statutory Audit
- Conversion
- Time Taken for Registration
- Procedure
Private Limited Company
- Members – 2 Directors – 2
- No minimum requirement
- Registrar of Companies
- Annual Return Filing Board Meetings & General Meetings
- Taxed at 30%
- High
- High
- Compulsory
- Can be converted into LLP
- 15 – 20 Days
- Obtain DSC (Digital Signature Certificate)
INC-29 Incorporation Filing
PAN, TAN Applications
One Person Company
- Members – 1 Directors – 1Nominee of Sole Member – 1
- No minimum requirement
- Registrar of Companies
- Annual Return Filing No Board Meetings, if only one director No General Meetings
- Taxed at 30%
- Medium
- Low
- Compulsory
- Cannot be converted before 2 years
- 10 – 15 Days
- Obtain DSC (Digital Signature Certificate)
INC-29 Incorporation Filing
PAN, TAN Applications
Limited Liability Partnership
- Designated Partners – 2
- No minimum requirement
- Registrar of Companies
- Annual Return Filing
- Taxed at 30%
- Medium
- Medium
- If Contribution
- Cannot be directly converted into a Private Limited Company
- 15 – 20 Days
- Obtain DSC (Digital Signature Certificate)
Obtain DPIN (Designated Partner Identification Number)
Name Approval
Filing for Incorporation
File LLP Agreement
PAN, TAN Applications