LLP full form
LLP stands for Limited Liability Partnership. LLP is a mix of a traditional partnership, and a company as some of its features is similar to a traditional partnership and some matches with a company.
LLP Registration:
A prime reason why it has evolved is that of its simplicity in a formation and easy maintenance. It helps owners also to limit their liabilities. This is the biggest advantage of the Limited Liability Partnership over a traditional Partnership Firm.
Incorporating an LLP company has both Limited Liability features of a Private Limited Company and the flexibility of a Partnership Firm. No partner is liable on account of unauthorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s misconduct. LLP form of organization is usually preferred by Professionals, Micro and Small businesses that are family owned or closely-held.
LLP registration procedure is the easiest and transparent process as it has a blend of the benefits of a Company and a Partnership Firm namely, limited liability feature of a Company and the flexibility of a Partnership Firm. Procedure of LLP registration is not lengthy as you can file your incorporation form online. Online LLP registration procedure will save you a lot of time and energy. LLP registration process includes following steps:
- Obtain Digital Signature
- LLP Name Application through RUN-LLP
- Incorporation of LLP- Form FiLLiP- (Includes DIN Application)
- PAN and TAN Application
- File LLP Agreement
Government Fees / Cost for LLP registration:
- For registration of Limited Liability Partnership, government fees are as below. Note that there are additional costs such as DIN application fees, stamp duties, LLP form filing fees as well:
- Limited Liability Partnership whose contribution does not exceed Rs. 1 lakh Rs. 500/-.
- Limited Liability Partnership whose contribution exceeds Rs. 1 lakh but does not exceed Rs. 5 lakhs Rs. 2000/-.
- Limited Liability Partnership whose contribution exceeds Rs. 5 lakhs but does not exceed Rs. 10 lakhs Rs. 4000/-.
- Limited Liability Partnership whose contribution exceeds Rs. 10 lakh Rs. 5000/-.
- However, it may vary according to the stamp duties of respective states.
Every LLP is required to have at least two Designated Partners who shall be individuals and at least one of them shall be a Resident of India. The mutual rights and duties of partners shall be governed by the agreement between LLP and the partners. This Agreement would be known as “LLP Agreement”.
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WHAT ALL YOU GET
- DIN for 2 Partners
- Digital Signature for 1 Partner
- Incorporation Certificate
- LLP PAN Card
- LLP TAN/TDS
- Web Hosting + 10 emails for 1 Year
- Bank A/C Opening Support
- Master File of all docs filed for Incorporation
- Web Domain Name for 1 Year
- LLP Agreement
- Dedicated Service Manager
1. What is an LLP in India?
Content 1An LLP, also known as a Limited Liability Partnership, is a business structure that combines elements from both partnerships and companies. It offers partners the benefit of liability while retaining the flexibility of a partnership setup.
2. How is an LLP different from a traditional partnership?
In contrast, to a partnership, an LLP provides partners with liability protection safeguarding their assets in the event of business losses, a benefit usually not present, in traditional partnerships.
3. What are the advantages of registering an LLP in India?
Forming an LLP has advantages such as liability protection for partners reduced compliance requirements compared to companies, no minimum capital requirement and the operational flexibility inherent in a partnership model.
4. What are the disadvantages of an LLP in India?
Drawbacks of an LLP may include audit obligations if turnover surpasses thresholds, appeal to investors when compared to private limited companies, and restrictions on fundraising activities.
5. Who can register for an LLP in India?
Any two or more individuals or entities can come together to create an LLP within the jurisdiction provided that one designated partner maintains residency status, within the country.
6. What is the minimum capital requirement for LLP registration in India?
LLPs can be set up without any capital requirement making them a popular option, for medium businesses.
7. How is an LLP taxed in India?
LLPs are taxed similarly to partnership firms and are subject to income tax. The profits distributed among partners are exempt from taxation.
8. Can an existing business be converted to an LLP in India?
Existing businesses in India including companies and registered partnerships can undergo conversion into LLPs by adhering to the guidelines specified in the Limited Liability Partnership Act of 2008.
9. Which documents are essential for registering an LLP in India?
Key documents such as partner PAN cards, proof of address proof of registered office address and digital signatures of partners are necessary for the registration of an LLP in India.