A COMBINATION OF PARTNERSHIP & COMPANY FORM OF BUSINESS
- Simplicity of a Partnership
- Advantages of a Private Limited Company
- Suitable for those who want something more than a partnership, but less than a Private Limited Company.
ADVANTAGES
- Limited Liability of Owners
- Ease of Transferring Ownership
- Ease of Operations
- Lower Compliance compared to a Private Limited Company
- No compulsory audit
- Advantage sof Corporate Structure
CONSTRAINTS
- Minimum 2 People are required to Start an LLP
- Disadvantage of a Partnership
DOCUMENTS REQUIRED
FOR REGISTRATION
Identity proof for Partners
Address proof for Partners
Address proof for LLP address along with NOC from landlord.
Limited Liability Partnership
What is Limited Liabilty:
Limited Liability is a good thing for the owners. It simply means that the owners (shareholders) will not be personally responsible for the loans & debts taken by the company and also for the activities of the company.
Is my LLP Different from Me?
YES. Your LLP is different from you. Your LLP can buy/sell properties in its own name, it can enter into contracts, it can hire employees, buy/sell products, pay taxes in its name etc.
What do I need to know about Capital?
Capital is the amount invested by the owners (Partners) into the business.
What do I need to know about DSC?
More than half of business transcations during current times have become digitized. Forms, contracts, government applications & reports have also become digital. DSC is nothing but the digital signature of the individual which is used for signing digital forms, contracts & reports.
What is DPIN?
It is Mandatory for every designated partner of a LLP to obtain a unique number from the Minstry of Corporate Affairs which is called DPIN (Designated Partner's Identification Number).
What is LLP Agreement?
An LLP agreement sets the mutual rights & duties of the partners. It sets the rules under which the LLP shall operate. The LLP agreement is of very high importance and should be prepared only with the help of an expert.
What if I don’t have an LLP Agreement?
In the absence of a LLP agreement, the rights & duties of the partners shall be as provided for under Schedule I of the LLP Act.
