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The (LLP) limited liability partnership is an upgraded version of the Partnership. The Limited Liability Partnership Act 2008 was published in the official Gazette of India on 7 January 2009 and has been notified with effect from 31 March 2009. Let’s have a deep dig at the complete LLP Registration Procedure in India.
As the name suggests LLP: A Limited Liability Partnership (LLP) is a partnership in which some or all partners have limited liabilities.
One of the popular and highly preferred categories of entity for doing business in almost all economic sectors in the majority of the countries worldwide is the limited liability. LLP is way different from Traditional Partnership. It is more in the form of organized form business.
LLP is mainly for the people who provide consultancy service. Partnerships (LLP), along with private and public limited corporations. It is the hybrid form which incorporates benefits of both partnership and companies.
An LLP also limits the personal liability of a partner for the errors, omissions, incompetence, or negligence of the LLP’s employees or other agents.
Separate Legal Entity-Continue its existence irrespective of Changes in partners i.e. perpetual succession.
Every Limited Liability Partnership shall have either the words “Limited Liability Partnership“ or the acronym “LLP” as the last words of its name and even LLP can be winded up with the consent of partners.
As per LLP Act, There should be a registered office thru legal correspondence can be done.
Reservation of name shall be filed. Partners shall have to select the name of the proposed LLP (up to 6 choices can be indicated in the order of preference)
|Forms to be filed by limited liability partnership (LLP) on incorporation:||Forms|
|Application for reservation or change of name
Incorporation document and subscriber’s statement
Details in respect of designated partners and partners of Limited Liability Partnership
Information with regard to the limited liability partnership agreement and changes, if any, made therein
Note: Stamp Duty needs to be paid where necessary as per the Stamp Act.
Penalty: For non-compliance, the penalty charged to LLP is Rs 100 Per day
|Factors||Limited Liability Partnership||Private Limited Company|
|Define||A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It, therefore, exhibits elements of partnerships and corporations.||A company whose shares may not be offered to the public for sale and which operates under legal requirements less strict than those for a public company.|
|Recommended for||Professional service firms||Early-stage entrepreneurs with broad business vision|
|Minimum Requirement||Designated Partners – 2||Member – 2
Director – 2
|Compliance Requirement||Annual Filings only||Annual Return Filing, Board Meetings & General Meeting etc|
|Statutory Audit||Only if Contribution increases the Limit||Compulsory|
|Limited Liability Protection||Provides Protection to founder||Provides Protection|
|Penalty||High||Low Compared to LLP|
|Venture Capital Funding||No||Yes. it is Possible|
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