LLP (Limited Liability Partnership) is a legal business entity that provides a combination of features of a partnership firm and a private limited company. It is a separate legal entity, like a company, but has the flexibility of a partnership. It has the benefit of limited liability for its partners, meaning that each partner's liability is limited to their agreed contribution in the LLP.
It requires at least 2 partners, and there is no limit on the maximum number of partners.
It requires registration with the Ministry of Corporate Affairs, and it is governed by the Limited Liability Partnership Act, 2008. It is mandatory for an LLP to file annual returns and financial statements with the Registrar of Companies.
The name of the proposed new LLP must be unique and eligible, & is not the same or similar to an already existing LLP, Company or Trademark.
Register your Limited Liability Partnership (LLP) with a minimum of 2 persons to act as the initial designated partner.
Business Premises can either be owned or rented.
The LLP Act, 2008 does not prescribe any minimum or maximum capital as such; hence you may keep the capital/contribution as per the business requirement
One of the Designated Partners of the LLP should be a resident in India.
The liability of the partners is limited to the extent of his/her contribution to the LLP.
An LLP is a separate legal entity. This means that it has assets in its own name and can sue and be sued.
Mutual discussion among partners makes management flexible.
Public access of the LLP details on the MCA portal, makes LLP transparent and reliable for fund raising
A LLP can help establish a strong branding and reputation for the business.
A LLP is viewed as more credible and trustworthy by customers, suppliers, and partners.
Our company assists in fulfilling these obligations with ease and efficiency. Compliance requirements can be broadly categorized into four types.
For further details and expert guidance, kindly seek the consultation of our seasoned startup consultants.
Filing of LLP Agreement
Notice of Appointment of Partners/ Designated Partners, Return of Changes, Statement of Account & Solvency, Notice of Resignation of Partner etc
Accounting , Tax Filing , Maintenance of records and registers etc
ROC Annual filing, Audit of financial statement, ITR filing etc
In India, the requirements to be a partner or designated partner of a Limited Liability Partnership (LLP) are as follows:
1) Age: A person must be at least 18 years of age to be a partner of an LLP.
2) Nationality: A person can be a partner of an LLP if he/she is an Indian citizen or a foreign national.
3) Residency: A person must be residing in India for at least 182 days in the preceding financial year to be eligible to become a partner in an LLP.
4) Financial interest: A person must have a financial interest in the LLP to be a partner.
5) Designated partner: A minimum of two partners are required to form an LLP and at least one of them must be a resident of India, who will act as a designated partner.
6) Other requirements: A partner or designated partner of an LLP must have a valid Director Identification Number (DIN) and a Digital Signature Certificate (DSC).
The LLP Act, 2008 and LLP Rules, 2009 doesn't specify any minimum capital requirement for registering an LLP. However, a LLP is required to deposit the required capital with a bank as per the LLP agreement between the partners. It's important to note that this applies to the registration process only, and that the LLP is responsible for maintaining adequate capital to run its operations and meet its financial obligations.
An LLP Agreement, also known as the partnership agreement, is a contract between the partners of the LLP that lays out the terms and conditions of the partnership, such as the distribution of profits and losses, the management and control of the LLP, the rights and duties of the partners, and dispute resolution procedures.
Yes, It is also mandatory to file the LLP agreement with the Registrar of Companies (ROC) at the time of incorporation of LLP.
In India, it is necessary for an LLP to have a registered office in India. The LLP Act, 2008 and LLP Rules, 2009 requires that an LLP must have a registered office within India where all the communications and notices can be addressed.
No, a body corporate cannot become a partner in an LLP, because a company, is a separate legal entity, distinct from its shareholders or members. But it can invest in LLP and get the profit sharing as per the agreement between LLP and the body corporate.
In India, an existing partnership firm or company can be converted into a Limited Liability Partnership (LLP) under the LLP Act, 2008 and LLP Rules, 2009. The process of conversion involves transferring the assets, liabilities, and business of the existing partnership firm or company to a new LLP.
It's important to note that a conversion of an existing partnership firm or company to an LLP can have tax implications and it's highly recommended to seek the guidance of our professional experts at Sure Tax Fincare, before proceeding with the conversion.
In India, Foreign Direct Investment (FDI) is allowed in Limited Liability Partnerships (LLP) through the automatic route under the Foreign Exchange Management Act (FEMA) and the Foreign Exchange Management Regulations, 2017. However, it's subject to certain conditions and sectoral caps as specified by the Reserve Bank of India (RBI) and the Ministry of Commerce and Industry. And it's important to comply with the provisions of Foreign Exchange Management Act (FEMA) and regulations of Reserve bank of India (RBI) regarding repatriation of investment and other applicable laws.
It's highly recommended to seek the guidance of our professional experts at Sure Tax Fincare, to ensure compliance with the regulations and laws.
