LIMITED LIABILITY PARTNERSHIP
As the name suggests a limited liability partnership (LLP) is an advanced form of partnership firm with a limited liability of the partners forming the partnership firm. LLP displays elements of both partnership and corporations. In this form of business entity partners do not share the liabilities for one another.
LLP creates a transparent and well defined platform for the professional firms to work on a single project. Numbro has worked closely with several firms and have extensive experience in firm registration in Hyderabad online and offline.
ADVANTAGES OF REGISTERING LIMITED LIABILITY PARTNERSHIP
Benefits of limited liability and flexibility in partnership.
No limit on number of partners
Audit is required only if the transaction exceeds certain limits
Individual partners are shielded as no partner is liable on account of the independent or un-authorized actions of other partners
No requirement of Minimum Contribution. Contribution of partner may consist of Tangible, Movable or Intangible property
Lesser Cost of Registration
Mutual rights and duties of the partners within an LLP are governed by agreement between the partners Since LLP contains elements of both ‘corporate structure’ as well as ‘partnership firm structure’. Hence, LLP is called a hybrid between a company and a partnership.
“Designated partner” in reference to Limited Liability Partnership means any partner designated as such according to section 7 of Limited Liability Partnership Act 2008. Every limited liability partnership shall have at least two designated partners, who are individuals and at least one of them shall be a resident of India, who shall be responsible for all the actions taken by the company, matters and things required to be done by the limited liability partnership in respect of compliance of the provisions of this Act.
A limited liability partnership (LLP) resembles entity like partnership, in which partners have limited liabilities. Whereas, in traditional Partnership firm we have unlimited Liabilities of the Partners. Therefore it exhibits the elements and features of partnerships and corporations.
Digital Signature Certificate (DSC) is a secured electronic format of signature which is used for signing electronic & online documents, forms for e-tenders, ROC requirements, IT & PF returns, etc.
DIN stands for Director Identification Number which is unique and is issued on request of the ROC to every person who intends to become a director. DIN is mandatory for a person to be appointed as Director.
An LLP agreement is a written understanding between partners that ascertains the profit sharing ratio among the partners, remuneration to the partners, objects of the LLP, registered office details and all the other key information that describe the way the business would be conducted and the key personnel who would be handling the business. An LLP Agreement can be changed as per the requirements of the partners in LLP.
A signed statement by the Registrar of Companies that the Limited Liability Partnership is duly incorporated under the respective statute and is an exclusive evidence that the LLP has been formally Incorporated and all the procedures prescribed under the act has been fulfilled.
There is no requirement for Minimum capital contribution for a LLP.
There must be a Minimum of Two Designated Partners and one of them must be Resident of India. There is no Maximum cap on number of Partners in LLP.
A minimum of two partners will be required for formation of an LLP. There is no limit to the maximum number of partners. Any individual or corporate body can be a partner in LLP.
A private Limited company can be converted into LLP but not vice versa. A partnership firm can be converted to LLP.
Non-resident Indians or individuals who do not reside in India for over 182 days cannot incorporate an OPC.Yes, an NRI can start LLP in India, however, there shall be at least one resident Partner in the proposed LLP.
Conversion of LLP into Private Limited Company is not allowed under LLP Act, 2008 and Companies Act 2013. Necessary amendments in the act are awaited.
A Statement of Disclosure of Shareholders and Directors has to be filed within 60 days of the date of Annual General Meeting. Annual Accounts is to be filed before 30th October every year.
Absolutely you can avail our services from anywhere within/outside India. As most of the procedural aspects are Online, the experienced team at Numbro will guide in all the procedural aspects of getting the company Registered.
Income Tax: A Limited Liability Partnership has to pay an advance tax on quarterly basis if the tax liability payable during the year is more than INR 10,000 and has to file income tax return on a yearly basis.
Goods & Services Tax (G.S.T): If the Limited Liability Partnership taxable turnover exceeds Rs.20,00,000 it is liable to be registered under G.S.T and compliances applicable to GST Act have to be complied with.