Offering limited liability protection to the group of associated people conducting business together, LLP proves to be the ideal fit for small and medium sized business.
Introduced recently during 2008 through Limited Liability Partnership Act, 2008, LLP has attained a popular status among legal structures for conducting business. As the name implies, this form of business limits the partners’ liabilities to their business contribution alone while offering protection against misdeeds, negligence, or other partners’ incompetence. This feature is considered as the primary improvement over General Partnership.
It being a legal entity established under the Act, LLP form of business is rich in legal capacity with rights to own assets and incur debts. Partners in LLP are not liable to creditors with relation to those debts.
LLP has the capacity to exist in perpetual succession till such a time as it gets dissolved. As LLP happens to be a separate legal person, departure or death of any partner or partners doesn’t terminate this; it continues to exist regardless of any partnership change.
It is easy to transfer ownership of a Limited Liability Partnership – inducting other persons, changing managing partners, or changing the ownership of the LLP can be performed smoothly.
LLPs having turnover below Rs.40 Lakhs and capital contribution under Rs.25 Lakhs do not require audit. This makes the format ideal for small businesses and start-ups that seek minimal compliance needs and those who are just getting started with their operations.
LLP is a juristic person entitled to own, acquire, alienate, and enjoy properties on its individual name. As long as the LLP functions as a going concern, its partners cannot claim on any of the properties.
LLPs enjoy certain exclusive tax advantages such as Surcharge and Dividend Distribution Tax. Loans availed by partners do not attract taxes.
Each legal member of the LLP being responsible to only a limited portion or amount of debts, LLP provides the maximum possible protection to partners from liability. Unlike partnership and proprietorship of business, liability in the case of LLP form of organization is very limited.
At Apnalegal, we require just around 7 days for getting your Limited Liability Partnership incorporated. Exact time period depends on the processing time of ROC.
Designated Partner Identification (DPIN) and Digital Signature Certificate (DSC) of proposed partners are needed. Normal time required for obtaining DSC and DPIN is less than 2 days.
Minimum one and maximum six names need to be submitted with the MCA, for the proposed LLP. Name approval process can be completed in 1 working days.
After submitting documents related to incorporation to the MCA together with an application for incorporation, MCA normally approves within 5 to 6 days, depending on processing time.
LLP registration with DSC, DIN, LLP deed drafting, name approval, PAN, TAN and government fees for incorporation.
LLP registration with DSC, DIN, LLP deed drafting, name approval, PAN, TAN, government fees for incorporation and one year TDS return filing.
LLP registration with DSC, DIN, LLP deed drafting, name approval, PAN, TAN, government fees for incorporation, one year TDS return filing and trademark registration.