Why Should You Register For LLP?

Registering LLP is the right choice, as it facilitates taxation benefits, credibility, business expansion, and quicker sanction of business loans.

Step 1

We will help you register your directors with the
LLP (Limited Liability Partnership )

step 2

We will help you Best Possible Way
With LLP

step 3

We will draft your LLP Firm
Provide 24×7 Support

Overview Required Documents Benefits Disadvantage
 

What is LLP Firm Registration ?

A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore can exhibit elements of partnerships and corporations. In a LLP, each partner is not responsible or liable for another partner’s misconduct or negligence.

What are The Characteristics OF LLP Firm

  • Separate legal entity: Like a company, LLP also has a separate legal entity. So the partners and the LLP in are distinct from each other. This is like a company where directors are different from the company.
  • No requirement of minimum capital: In the case of companies there should be a minimum amount of capital that should be brought by the members or owners who want to form it. But to start an LLP there is no requirement of minimum capital.
  • Minimum number of members: To start a limited liability partnership at least two members are required initially. However, there is no limit on the maximum number of partners.
  • 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:
    1. the contributions of the LLP exceeds 25 lakhs or
    2. the annual turnover of the LLP exceeds 40 lakhs

What are the benefits of LLP Firm Regisration ?

There are various benefits of LLP Firm Registration.

  • It is more flexible to organize the internal structure of LLP. Comparatively, it is complex to organize the internal structure of a company.
  • (ii)There is no maximum limit for the number of partners in LLP. In the private limited company, shareholders are limited to the                extent of 200 shareholders.
    1. Raising and utilization of funds depends on the partners will. Funds can be bought and utilized only as per the norms listed under the Companies Act, 2013.
    2. LLP is exempt from Dividend Distribution Tax (DDT). In contrast, a company has to pay DDT on dividend distribution.
    3. Professionals like Chartered accountant, Cost Accountant(CMA), Advocates, engineers, and doctors may prefer to register as LLPs.
    4. 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.

What Is the 3. Disadvantages for msme

  • Any act of the partner without the other partner may bind the LLP
  • LLP cannot raise money from the public.
  • Angel investors and venture capital firms generally prefer not to invest in LLPs. Private Limited companies are preferred over LLPs