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Limited Liability Partnership (LLP) Registration
Limited Liability Partnership (LLP) Registration
Limited Liability Partnership has been introduced in India by way of Limited Liability Partnership Act, 2008. LLP is an alternative corporate business form that gives the benefits of the limited liability of a company and the flexibility of a Partnership. A Limited Liability Partnership combines the advantages of both the Company and Partnership into a single form of organization and one partner is not responsible or liable for another partner’s misconduct or negligence. It is very easy to do LLP Registration in India, as the process is very simple compared to Companies and does not involve much formality. An LLP is indeed advantageous because of comparatively lower cost of formation, lesser compliance requirements, easy to manage and run, partners are not liable for the acts of the other partners.
LLP Incorporation in India is made easier by the Ministry of Corporate Affairs. From 2nd October 2018, the earlier process of LLP registration has been modified. Now the new process is much simpler and with fast-track mode. Experts at B H SOALANKI have helped several start-ups with LLP Registration. In All major cities of India, Mumbai, Delhi, Bangalore, Pune, Chennai and more. Our services are reliable and quick.
Legal Compliances for Limited Liability Partnership (LLP)
- INCOME TAX RETURN: After LLP Incorporation at end of financial year need to prepare it financial statement such as Profit and Loss statement and Balance sheet. And apply for filing income tax return.
- GST RETURN: If business owner who applied for GST Registration then, need to file GST returns on month or quarterly basis.
- FORM 8: Statement of Account & solvency- Due on 30th October
- FORM 11: Statement of Account and solvency- Due on 31th May.
Advantages of Limited Liability Partnership Registration
It’s quick and easy to get started
It’s now very easy to start Limited Liability Partnership and it can all be done online. Now you can start a Limited Liability Partnership in few days. What’s more, the cost of incorporation is an allowable expense against corporation tax.
Body Corporate
Just like a Company, LLP is also body corporate, which means it has its own existence as compared to Partnership. LLP and its Partners are distinct entity in the eyes of law. LLP will know by its own name and not by the name of its partners.
Limited Liability
A Limited Liability Partnership (LLP) exists as a separate legal entity from your personal life. Both LLP and person, who own it, are separate entities and both functions separately. Liability for repayment of debts and lawsuits incurred by the LLP lies on it and not the owner.
Taxation Aspect on LLP
For income tax purpose, LLP is treated on a par with partnership firms. Thus, LLP is liable for payment of income tax and share of its partners in LLP is not liable to tax. Thus no dividend distribution tax is payable.
Easy transfer of ownership
It is easy to become a Partner with minimum number of documents or leave the LLP or otherwise it is easier to transfer the ownership in accordance with the terms of the LLP Agreement.
Raising Money
Financing a small business like Sole Proprietorship or Partnership can be difficult at times. A LLP being a regulated entity like Company can attract finance from Investors, financial institutions etc.
What Your LLP Registration Agreement Contains
- Basic information about all partners, addresses and type of business.
- Amount of capital introduced in LLP.
- Profit and Loss sharing ratio of Partners.
- Details of scope of business to be carried by LLP.
- Description like adding new partner or retirement of partner.