LLP is an organization which combines the advantages of both a company and a partnership firm. It gives the partners the freedom of a partnership firm as well as the limited liability feature of a company so that the fault of one partner need not be borne by others. LLPs are governed by Limited Liability Partnership Act,2008.
Limited Liability partnership are not required to audit the accounts. Any other company (Public, Private) are mandated to get their accounts audited by the auditing firm. LLP is required to audit their account only when crosses the turnover as prescribed.
Limited Liability Partnership can be started with the minimum amount of capital money. Capital may be in the form of tangible, movable asset like Land, machinery or intangible form.
There is no need to maintain any statutory records except books of accounts. Less government intervention and less compliance level are enforced on an LLP as compared to the restrictions enforced on other business entities.
The cost of registration of Limited Liability Partnership is low as compared to any other company (Public or Private).
If the partners of Limited Liability partnership withdraw profits from the company, an additional tax liability in the form of DDT is not payable by partners.
Being a separate legal entity, it’s easy to transfer the ownership of the LLP to another person by admitting them as a partner of the LLP.
Partners are not liable to be sued in the name of LLP, as a juristic legal person LLP can sue in its own name.
Limited Liability partnership may have partners varying from 2 to many. There is no limit for partners in Limited Liability partnership. An LLP requires a minimum 2 partners while there is no limit on the maximum number of partners in contrast to a private company wherein there is a restriction of not having more than 200 members.
LLPs enjoy the status of separate legal identity hence making the partners and the business different persons.
All the LLPs are not required to get their accounts audited unless their turnover / capital exceeds a specified limit.
LLPs enjoy perpetual existence and thus exist irrespective of the status of the partners of the LLP.
Partners of LLP enjoy the limited liability feature of a company which enables the partners to free themselves from the faults committed by another partner.
Ownership of LLP can be easily transferred to others by making them designated partners.
A private limited company cannot raise funds from public in the form of share capital.
The shares in a private limited company cannot be sold or transferred to anyone else without the agreement of other shareholders.
A private limited company can have maximum of 200 shareholders which restricts the scope of expansion and growth of the company.
praveenatax.com is web portal of Govche India Private Limited with operations since 2010. praveenatax.com is one stop business setup and consulting company, managed by specialized team of Business Analysts,Company Secretaries, Chartered Accountants, Corporate Lawyers and Financial Professionals company headquartered in Chennai, India. Having known for our quality of services, delivering the projects on time, we have clients spread across the globe
Got Queries? Request a call from an Business Consultancy.
We will provide income tax return preparation, Revised return, Responding to Department notices and solving other Income Tax related issues.
Our Professionals Will help you in getting your business licensesand Business
licenses necessary for smooth running of businesses.
we will Provide Funds for both personal and Business. Our funding system gives a credit line facility, enabling you to expand your business to new heights.
We will make your business to GST Compliance. Returns are required to be filed digitally online through a common portal to be provided by GSTN.
ll the partners are required to get DPIN(Designated Partner Identification Number). DIN can be used if a partners possesses DIN
Digital Signature Certificate should be obtained and should be registered with the LLP Application
Form1 to be filled for Name confirmation and form 2 should be filed for Incorporating an LLP after the Name is confirmed.
After incorporation of LLP, an initial LLP agreement is to be filed within 30 days of incorporation of LLP.
Once the LLP is Incorporated, we will send you LLP Certificate.
Minimum of 2 persons are required to form an LLP. There is no limit on the maximum no. of partners an LLP can have.
Residence proof and ID proof are required for all the partners along with PAN card if the partner is an Indian national. No objection certificate along with ID and residence proof of the landlord of office premises is also required.
If the LLP has a turnover of Rs.40 lakhs or more and/or has a capital contribution of Rs.25 lakhs or more, the financial statements should be audited.
Residence proof and ID proof are required for all the partners along with PAN card if the partner is an Indian national. No objection certificate along with ID and residence proof of the landlord of office premises is also required.
DIN is a unique identification number which is allotted to all the directors existing or proposed. DIN can be obtained by filing e-form DIN1 in MCA portal.
Designated partner needs to be over 18 years of age. There is no restriction with respect to the nationality or citizenship.
Only a natural person who is an Indian citizen and a resident in India is eligible to incorporate a One Person Company or be a nominee member.
Form INC-5 shall be filed within sixty days of exceeding threshold limits.
In such a case, such person shall meet the criteria of being a member in only one OPC within a period of one hundred and eighty days i.e., he/she shall withdraw his membership from either of the OPC’s within one hundred and eighty days.
Company’s proposed name should be unique i.e., it should not be identical to any existing name. Names that infringe others’ rights, trademarks or patents are likely to be rejected by ROC.
In case the paid up share capital of an OPC exceeds fifty lakh rupees or its average annual turnover exceeds during the relevant period exceeds two crore rupees, then the OPC has to mandatorily convert into private or public company.
