PARTNERSHIP FIRM

OVERVIEW

The Concept Of The Limited Liability Partnership (LLP) Was Introduced In India In 2008. The Limited Liability Partnership Act, 2008 Regulates The LLP In India. Minimum Two Partners Are Required To Incorporate An LLP. However, There Is No Upper Limit On The Maximum Number Of Partners Of An LLP..LLP Is An Alternative Corporate Business Form That Gives The Benefits Of Limited Liability Of A Company And The Flexibility Of A PartnershipLlps Are A Flexible Legal And Tax Entity That Allows Partners To Benefit From Economies Of Scale By Working Together While Also Reducing Their Liability For The Actions Of Other Partners.

BENEFITS

  • Easy to form: Forming an LLP is an easy process. It is not complicated and time consuming like the process of a company. The minimum amount of fees for incorporating an LLP is Rs 500 and the maximum amount which can be spent is Rs 5600.
  • Liability: The partners of the LLP is having limited liability which means partners are not liable to pay the debts of the company from their personal assets. No partner is responsible for any other partner misbehaves or misconduct.
  • Perpetual succession: The life of the Limited Liability Partnership is not affected by death, retirement or insolvency of the partner. The LLP will get winded up only as per provisions of the act of 2008.
  • Management of the company: All the decisions and various management activities are seen and done by the directors of the company. Shareholders receive very less power as compared to the board of directors. Easy transferability of ownership- There is no restriction upon joining and leaving the LLP. It is easy to admit as a partner and to leave the firm or to easily transfer the ownership on others.
  • Taxation: Yes, it is the benefit of LLP. Limited liability partnership is exempted from various taxes such as dividend distribution tax and minimum alternative tax. The rate of tax on Limited Liability Partnership is less than as compared to the company.
  • No compulsory audit required: Every business has to appoint an auditor for checking the internal management of the company and its accounts. However, in the case of LLP, there is no mandatory audit required. The audit is required only in those cases where the turnover of the company exceeds Rs 40 lakhs and where the contribution exceeds Rs 25 lakhs.

Documents required for LLP Registration

To register a LLP Company in India an applicant has to submit the following documents:
  • PAN Card
  • Partners Address Proof
  • Photograph
  • Business Address Proof
  • NOC from owner
  • Rent Agreement