Limited Liability Partnership - LLP
Limited Liability Partnership Business
A limited Liability Partnership (LLP) is the hybrid structure of a Private company and partnership Firm. The risk-oriented business or services’ first choice is to form an LLP in India.
LLP IN BANGALORE
LLP business in Bangalore has multiple benefits compared to Private and partnership Firms, resulting in higher LLP registration in Bangalore.
BENEFITS OF AN LLP
- 1. Separate legal business,
- 2. It provides immunity to the Partner’s personal property or assets in case of business loss or closure of the LLP due to unforeseen events.
- 3. And also it has the flexibility to operate the Company
- 4. Easier to start with a lesser cost to form LLP in India.
Team IN Filings has been a top Company Secretary and expert in LLP Company Registration in Bangalore for the last 15 years.
LLP is a combined structure traditional Partnership, and a company as some features are similar to a traditional partnership and some match with a company.
Its simplicity in formation and easy maintenance is the prime reason it has evolved. It helps owners also to limit their liabilities.
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 AgreementAgreement between LLP and the partners. This AgreementAgreement would be known as the “LLP Agreement.”
Incorporating a Limited Liability Partnership is easy, seamless, cheapest, and quickest with TeamIndia.co.in. Also, file your LLP Annual filing with TeamIndia.co.in!
LLP Features
1. No Minimum Capital
No minimum capital is required for LLP Formation. No minimum capital contribution required from partners. A Limited Liability Partnership can be registered even with Rs. 1000 as total capital contribution.
2. LLP Audit
In the case of LLP, no mandatory Audit is required. The audit is required only when the turnover of the company exceeds Rs 40 lakhs and where the contribution exceeds Rs 25 lakhs.
3. Easy Transfer
Interest in Limited Liability Partnership can easily be transferred by introducing new Designated Partner in LLP and it will not affect its existence As it is a separate legal entity.
4. Separate Legal Entity
LLP enjoys the benefit of Separate Legal Identity in the eyes of law which clearly states that assets and liabilities of the business are not the assets and liabilities of the Partners.
5. LLP Tax Benefits
It is also exempted from various taxes such as dividend distribution tax and minimum alternative tax. The rate of tax on LLP is less than as compared to the company.
6. Multiple Relationship
A person can be a partner, employee or creditor of an Limited Liability Partnership. There may be different contracts with the same person in different capacity.
Process of Registration
1. Documentation – Our Compliance Manager will get in touch with you to obtain your documents along with a simple checklist. You need to fill up the checklist and submit along with the documents for processing. Our expert team will verify documents and proceed with LLP Formation Procedure. All throughout the process, a dedicated Compliance Manager will keep you updated on the progress of LLP Registration.
2. Form FiLLiP – Once you submit your documents along with Checklist, we will proceed with the application for the Digital Signature. And simultaneously we will prepare the application for the LLP Name reservation through RUN. Once the name is approved, we will prepare the Form FiLLiP where in we will be applying for the DIN of the directors and Incorporation of an LLP. The MCA may take up to 6-7 days to approve the Application.
3. LLP Registration – Once the MCA approves the application for the Incorporation of Limited Liability Partnership, the next step would be to prepare an LLP Agreement. Simultaneously we will prepare the applications for PAN and TAN for an LLP and submit them separately. Once PAN and TAN is received, You may then proceed to open the Bank Account in the name of your Limited Liability Partnership, once PAN is allotted.
Document Required
- Photograph of all the Directors and shareholders
- PAN Card of all the Directors and shareholders
- Self-Attested ID Proof of all the Directors (Driving License/Passport/Voter ID)
- Electricity Bill or any other utility bill for the address proof of the Registered Office
- No Objection Letter (NOC) from the landlord to use the office as a registered office of a company must be submitted.
Frequently Asked Questions
Yes, an existing partnership firm can be converted into LLP by complying with the Provisions of the LLP Act.
Pvt. Ltd. Co. and LLP have a lot of similarities yet they both are different in many of its characteristics and structures. When you wish to start your business, there are many factors that one needs to think upon before selecting any business structures. However, before selecting any business structure, you may refer LLP vs Pvt Ltd- A comparison between two important forms of organisation in India.
Yes, any existing private company or existing unlisted public company can be converted into LLP by complying with the Provisions of the LLP Act.
LLP shall have an option to declare one more address within the jurisdiction of same ROC (other than the registered office) for getting statutory notices/letters etc. from Registrar.
A Limited Liability Partnership is a legal entity separate from its partners and therefore, offers limited liability to its partners whereby any debts and obligations of the LLP will be borne by the assets of the LLP. In the case of a conventional partnership, the partners are jointly and severally liable for each debt and obligation of the partnership firm.
In case the paid up share capital of an OPC exceeds 50 lakh rupees or its average annual turnover of immediately preceding three consecutive financial years exceeds two crore rupees, then the OPC has to mandatorily convert itself into a private or public company.
Persons, who subscribed to the “Incorporation Document” at the time of incorporation of LLP, shall be partners of LLP. Subsequent to incorporation, new partners can be admitted to the LLP as per conditions and requirements of LLP Agreement.
Every LLP would be required to file Annual Return with ROC. A duly authenticated Annual Return in e- Form-11, is to be filed with the Registrar, together with the prescribed fee, within a period of 60 days from the closure of every financial year.
LLP Form 8 (Statement of Account & Solvency) and LLP Form 11 (Annual Return) annually.
The ‘Annual Return’ is required to be filed within 60 days of close of the financial year and ‘Statement of Accounts & Solvency’ shall be filed within 30 days from the end of six months of the financial year to which it relates. Every LLP has to maintain uniform financial year ending on 31st March of a year.
File LLP Form No. 1 (Application for reservation or change of name) by logging on to the LLP portal along with the fee prescribed and attaching the digital signature of the designated partner proposing to incorporate a LLP.
No, FDI is not allowed for One Person Company. You may consider incorporating a Private Limited Company if you desire to bring FDI.
TeamIndia.co.in provides Limited Liability Partnership Registration all across India.
You can form a company as LLP for Rs. 5999/- all inclusive. Costs include government fees for LLP registration, ROC fees and all other expenses.
Don’t worry!! Our expert will help you to choose a best suitable plan for you. Get in touch with our team to get all your queries resolved. Write to us at support@teamindia.co.in or call us
