Limited Liability Partnership:
Meaning:
LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name. The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. Further, no partner is liable on account of the independent or unauthorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.
Limited Liability Partnership or LLP is a form of partnership wherein the partner’s liability is limited up to the capital contribution made by them.
Minimum Required Partners:
Minimum 2 PArtners are required for LLP Formation.
Checklist for Partners:
- PAN Card or Passport(foreign Nationals or NRI)(Self Attested)
- Aadhar Card/Voters ID/PassPort/ driving license(self attested)
- Passport size Photograph
- Blank document with specimen signature.
Note: In the case of Foreign nationals or NRIs, all the documents must be notarized(if currently in India or a non-commonwealth country) or apostilled (if from a commonwealth country).
Checklist for LLP:
- Electricitybill(not older than 2 Months)
- Notarized rental agreement in English and No-Ojection certificate from the Property Owner(in case of rented property)
- Sale deed/property deed in English(in case of owned property).
Special Note: – The address proof of the applicant or registered office need not be older than two – All documents annexed should be clear and legible.
Compliances:
- Filing of form 11 – Annual Return of Company.
- Filing of Form 8 – Statement of Accounts and Solvency
- Designated Partner’s KYC
- Filing of Income Tax Return of LLP
Benefits of registration of LLP:
- Less Compliances
- Lesser cost of Compliances
- Allowance of deduction in Income Tax within the limits prescribed in Income Tax Act 1961.