Limited Liability Partnership (LLP) offers limited liability protection for an association of persons doing business. The intention is to introduce a business with fewer complexities and compliance. Therefore, LLP is ideal for small businesses.
Everything you should know about a LLP
- The partners are not personally liable and cannot be forced to pay a business debt or liability with personal property or assets. Their assets would be shielded from all business liability.
- Benefits of both Company and a Partnership which implies that the business will have a separate entity in respect of partners’ interest.
- LLP is easy to manage and statutory audit is not required for Limited Liability Partnership. LLP is most ideal for small enterprises. Tax Audit is also not required for LLPs with capital less than Rs. 25 lac and turnover not exceeding Rs. 40 lac.
- LLP continues to exist beyond the existence of its Partners. This is not possible in traditional partnership firms.
- No partner will be responsible for other partner’s misconduct. Hence partners stay unaffected by the action of other partners.
- An LLP is opened for business conversion which implies private company, firm or an unlisted public company can convert into an LLP following the provisions of the Act.
I have just incorporated my LLP. What are the MUST compliance(s) that I have to pay for?
Once an LLP gets incorporated, Annual Fillings (Form 8 and Form 11), Income Tax filings, Appointment of auditor (reaching a certain limit),DIR KYC, Tax Audit, GST ( if acquired ) become some mandatory compliance to follow. Calls for an Expert
How many Partners are needed to register an LLP?
To incorporate a Limited Liability Partnership, a minimum of two people are required. A Limited Liability Partnership must have a minimum of two Partners and can have a maximum of any number of Partners
Is it mandatory to have GST even after registering an LLP?
A new startup registered under the Startup India scheme needs mandatory GST registration. If you are in E-commerce then acquiring GST is committal. LLPs incorporated in other special category states when exceeding the limit of an annual turnover of INR20 lakhs even. Get started
What is the minimum capital required to start an LLP?
An LLP can be started with any amount of capital. There is no requirement to show proof of capital invested during the incorporation process. Partner's contribution may consist of both tangible and/or intangible property and any other benefit to the LLP.
What is the procedure for online registration of and LLP in India?
An LLP becomes a separate legal entity to run. The LLP needs a minimum of two partners. Get partners’ DIN, PAN Card and address proof,to begin with,the registration process. Ask for Assistance
I am already running my business under the LLP agreement. Is it possible to change it into a Company?
An LLP can be converted into a Pvt. Ltd. company as per the provisions contained in Section 366 of the Companies Act, 2013 and Company (Authorised to Register) Rules, 2014. We will assist you with the decisions requiring less paperwork and complexities.
What is ADT-1? Is this compliance mandatory for a Limited Liability company?
LLPs are required to have their accounts audited by a practicing Chartered Accountant if its annual turnover, in any financial year exceeds Rs.40 lakhs or its contribution exceeds Rs.25 lakhs. To avail the exemption from audit, the LLPs accounts filed with the ROC must contain a statement by the Partners to the effect that the Partners acknowledge their responsibilities for complying with the requirements concerning accounting and preparation of financial statements. The statutory audit is not applicable in case of LLP.
What is an LLP name search? Why is it important for new LLP registration?
Registrar of Companies expects all the applicants to follow a certain guideline before a name is applied. The applied company name is suggested to have a Brand Name, Business Activity, title (LLP, OPC, Pvt. Ltd.).New companies are entitled to go under the process as it is the first step to register a business. Check for more updates.
Can an existing traditional Partnership firm be converted into an LLP?
Yes, an existing partnership can be converted into an LLP. It may also serve some benefits.
Documents required for registering an LLP
- Minimum 2 Partners
- PAN Card of Directors
- DIN of Directors
- Address Proof of Firm
- LLP Agreement
- Digital Signature Of Partners
- Authorized Capital
- Certificate of Incorporation
- DIN of Directors
- Bank Account Opening Document Support
- Digital Signature of Directors
- PAN Card
- Customized Incorporation Master File
- MOA + AOA
- Company TAN/TDS Number
- GST Certificate (If Needed/Applicable)
- Application filling for Certificate of Commencement of business
- Assistance with further compliances