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LIMITED LIABILITY PARTNERSHIP (LLP)

A Limited Liability Partnership(LLP) is introduced in India under the Limited Liability Partnership Act, 2008. It is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The advantage of incorporating a business form as a Limited Liability Partnership is that in an LLP, one partner is not responsible or liable for another partner’s misconduct or negligence. Having a separate legal identity from its members and shareholders, an LLP is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. An LLP registration online also contains a different level of tax liability from that of a company.

ADVANTAGES OF LLP

Separate legal entity :
Like a company, a LLP is a body corporate and therefore a separate legal entity and a LLP member's liability is limited. However, like a partnership the relationship between the LLP members is governed by private agreement. An LLP does not have shareholders or directors and is taxed like a partnership.

Limited Liability :
One advantage of a limited liability partnership is the liability protection it affords. This type of partnership structure protects individual partners from personal liability for the negligent acts of other partners or employees not under their direct control. In addition, individual partners are not personally responsible for company debts or other obligations. This is advantageous for an individual partner when potential lawsuits or claims of negligence against the business are concerned.

company
No requirement for minimum contribution :
As against company there is no minimum capital requirement in LLP. An LLP can be formed with least possible capital.
Minimum Capital contribution
In Case of Company- Private Company - 1,00,000
Public Company -5,00,000
In Case of LLP- No such mandatory requirement
Moreover, the contribution of a partner may consist of tangible, movable or immovable or intangible property or other benefit to the LLP.

Tax benefits :
For income tax purpose, LLP is treated at 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. Provision of 'deemed dividend' under income tax law, is not applicable to LLP. Section 40(b): Interest to partners, any payment of salary, bonus, commission or remuneration allowed as deduction in the hands of Limited Liability Partnership

Less cost for formation :
The cost of registering LLP is low as compared to cost of incorporating a private limited or a public limited company.

No requirement of compulsory audit :
All the companies, whether private or public, irrespective of their share capital, are required to get their accounts audited. But in case of LLP, there is no such mandatory requirement. A Limited Liability Partnership is required to get the audit done only if:-

a). If the contributions of the LLP exceeds Rs. 25 Lakhs, or
b). If the annual turnover of the LLP exceeds Rs. 40 Lakhs

company
Lower compliance :
Approximately at least 8 to10 compliances per annum are required to be made by a private limited company whereas a Limited Liability Partnership is required to file only the Annual Return & a Statement of Accounts & Solvency

Dividend Distribution Tax not applicable :
In the case of a company, if the owners to withdraw profits from company, an additional tax liability in the form of DDT 15% (plus surcharge & education cess) is payable by company. However no such tax is payable in the case of LLP and profits of a LLP can be easily withdrawn by the partners.

Easy to wind up :
Winding up a LLP in easy, to begin the process for winding up of LLP, a resolution for winding up of LLP must be passed and filed with the Registrar within 30 days of passing of the resolution. On the date of passing of resolution of winding up of LLP, the voluntary winding up shall be deemed to commence.

DOCUMENTS REQUIRED FOR REGISTRATION OF LLP

A. Documents of Partners
PAN Card/ ID Proof of Partners :
All the partners are required to provide their PAN at the time of registering LLP. PAN card acts as a primary ID proof.

Address Proof of Partners :
Partner can submit anyone document out of Voter’s ID, Passport, Driver’s license or Aadhar Card. Name and other details as per address proof and PAN card should be exactly same. If spelling of own name or father’s name or date of birth is different in address proof and PAN card, it should be corrected before submitting to RoC.

Residence Proof of Partners :
Latest bank statement, telephone bill, mobile bill, electricity bill or gas bill should be submitted as a residence proof. Such bill or statement shouldn’t be more than 2-3 months old and must contain the name of partner as mentioned in PAN card.

Photograph :
Partners should also provide their passport size photograph, preferably on white background.

Passport (in case of Foreign Nationals/ NRIs) :
For becoming a partner in Indian LLP, foreign nationals and NRIs have to submit their passport compulsorily. Passport has to be notarized or apostilled by the relevant authorities in the country of such foreign nationals and NRI, else Indian Embassy situated in that country can also sign the documents.

Foreign Nationals or NRIs have to submit a proof of address also which will be a driving license, bank statement, residence card or any government issued identity proof containing the address.

If the documents are in other than the English language, a notarized or apostilled translation copy will be also be attached.

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B. Documents of LLP
Proof of Registered Office Address :
Proof of registered office has to be submitted during registration, or within 30 days of its incorporation. If the registered office is taken on rent, rent agreement and a no objection certificate from the landlord has to be submitted. No objection certificate will be the consent of the landlord to allow the LLP to use the place as ‘registered office’. Besides, anyone document out of utility bills like gas, electricity, or telephone bill must be submitted. The bill should contain complete address of the premise and owner’s name and the document shouldn’t be older than 2 months.

Digital Signature Certificate :
One of the designated partners needs to opt for a digital signature certificate also since all documents and applications will be digitally signed by the authorized signatory.

FIXED PRICE PLANS

BASIC PLAN

INR 7,999/-

  • LLP deed drafting
  • DSC
  • DIN
  • Name approval
  • PAN
  • TAN
  • GST Registration
  • Government fee



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GOLD PLAN

INR 11,999/-

  • LLP deed drafting
  • DSC
  • DIN
  • Name approval
  • PAN
  • TAN
  • GST (GSTIN) Registration
  • One year TDS filing
  • Government fee


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PLATINUM PLAN

INR 17,999/-

  • LLP deed drafting
  • DSC
  • DIN
  • Name approval
  • PAN
  • TAN
  • GST (GSTIN)Registration
  • One year TDS filing
  • Trademark Registration
  • Government fee
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