Limited Liability Partnership

Introduction

Limited liability partnership is the mixture both the partnership and corporation. It has the quality of both forms. Under this form of organization partners have limited liability   which means the private property   of the partner is not used in paying   the debts of the company. As many business persons go for this because nowadays it become a very favored form of business.   In this firm, there are lots of partners in the firm but they are not liable for any misconduct. They are only responsible for their own works. All LLP is governed by the LLP Act of 2008. Although, in India LLP was established in April 2009.

 

Different from company owners it has a legal separate entity. It can enter into a contract and get  property by his  name. It&rsquo's not only famous in India. It’s also seen in countries like the U.K and Australia etc.

MERITS OF LLP

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  1. Easy Formation:- LLP formation is an easy procedure. Like the is company process, it not such a difficult and time-consuming process.
  2. Liability:-  In LLP partners have limited liability which means they are not Answerable for paying debts of the company from their private assets. No one is liable for any other misbehaves.
  3. Management of the company:-  The operators of the business can take all the decisions and see the various acts of the company. As compared to the board of directors shareholders receive very fewer powers.
  4. Easy Transfer of Ownership:- There is no excuse for joining and resigning from this firm. It’s easy to join as a partner and resign from the firm. Or they can easily give ownership to others.
  5. No Compulsory Audit Required:- In LLP, there is no compulsory audit required. The audit is only required when the turnover exceeds Rs. 40 lakhs and contribution exceeds Rs. 25 lakhs

DEMERITS OF LLP

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  1. Easy Formation:- LLP formation is an easy procedure. Like the company process, it is not such a difficult and time-consuming process.
  2. Liability:- In LLP partners have limited liability which means they are not Answerable for to pay paying of the company from their private assets No one is liable for any other misbehaves.
  3. Management of the company:- The operators of the business can take all the decisions and see the various acts of the company. As compared to the board of directors shareholders receive very less powers.
  4. Easy Transfer of Ownership:- There is no excuse  on joining and resigning  this firm. It’s easy to join as a partner and to resign the firm. Or they can easily  gives  the ownership to others.
  5. No Compulsory Audit Required:- In LLP, there is no compulsory audit required. The audit is only required when the turnover is exceeds Rs. 40 lakhs and contribution exceeds Rs. 25 lakhs

PROCEDURE OF REGISTRATION IN LIMITED LIABILITY PARTNERSHIP

 

  1. GET  DIGITAL SIGNATURE CERTIFICATE(DSC):- In advance to begin the registration process , you must have to apply first for digital signature certificate  of the assign partners in the company.  Because in LLP all the document is filed online and required DSC. So, partners must get DSC from govt. certifying agencies
  2. APPLYING FOR DIRECTOR IDENTIFICATION NUMBER (DIN):-  First you have to apply for DIN of all the assign partners in the LLP. The allotment form of DIN has to be create in form DIR -3.

    You have to join the photocopy of Aadhaar card and PAN card to the form. The form is signed by the company secretary in full time application of the firm.

  3. APPROVAL OF NAME:-  LLP –RUN(RESERVE UNIQUE NAME)  is enter for the reservation of name of LLP. Which  is form by central registration centre under NON- STP.

    The RUN-LLP has to be conduct by fees as per supplement ‘A’ which may be approved or rejected by the Registrar. Re-submission of bill shall be permit within 15 days for correcting the defects.

  4. LLP INCORPORATION:- The form of incoporation is FiLLiP which is submit to Registrar. Who has administration over the state in which LLP registered office is located . The form is integrated form. It also allows for appeal for allotment of DIN.

  5. FILE LLP AGREEMENT:- LLP agreements  controls  common rights and duties of LLP and its partners. It print on stamp paper and its different for every states.

ESSENTIAL DOCUMENTS FOR REGISTRATION OF LLP

DOCUMENTS OF PARTNERS

  • PAN CARD/ ID PROOF OF PARTNERTS - PAN card acts as a basic ID proof.
  • ADRESS PROOF OF PARTNERS - It includes Voter ID, Passport, Driving license or Aadhar card.
  • RESIDENCE PROOF OF PARTNER - Latest Bank statement, Telephone and electricity bills, or gas bill also submitted as resident proof.
  • PHOTOGRAPHS – Passport size photograph with white background.
  • PASSPORT – it required in case when partners have foreign nations or NRIs.

DOCUMENTS OF LLP

  • PROOF OF REGISTERED OFFICE - It has to be submitted on the time of registration or within 30 days of incoporation
  • DSC – It required Digital signature certificate of designated partners.