Limited Libility Partnership
LLP full form:
LLP stands for Limited Liability Partnership. LLP is a mix of a traditional partnership, and a company as some of its features is similar to a traditional partnership and some matches with a company.
A prime reason why it has evolved is that of its simplicity in a formation and easy maintenance. It helps owners also to limit their liabilities. This is the biggest advantage of the Limited Liability Partnership over a traditional Partnership Firm.
Incorporating an LLP company has both Limited Liability features of a Private Limited Company and the flexibility of a Partnership Firm. No partner is liable on account of unauthorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s misconduct. LLP form of organization is usually preferred by Professionals, Micro and Small businesses that are family owned or closely-held.
LLP registration procedure is the easiest and transparent process as it has a blend of the benefits of a Company and a Partnership Firm namely, limited liability feature of a Company and the flexibility of a Partnership Firm. Procedure of LLP registration is not lengthy as you can file your incorporation form online. Online LLP registration procedure will save you a lot of time and energy. LLP registration process includes following steps:
- Obtain Digital Signature
- LLP Name Application through RUN-LLP
- Incorporation of LLP- Form FiLLiP- (Includes DIN Application)
- PAN and TAN Application
- File LLP Agreement
Government Fees / Cost for LLP registration:
For registration of Limited Liability Partnership, government fees are as below. Note that there are additional costs such as DIN application fees, stamp duties, LLP form filing fees as well:
Limited Liability Partnership whose contribution does not exceed Rs. 1 lakh Rs. 500/-.
Limited Liability Partnership whose contribution exceeds Rs. 1 lakh but does not exceed Rs. 5 lakhs Rs. 2000/-.
Limited Liability Partnership whose contribution exceeds Rs. 5 lakhs but does not exceed Rs. 10 lakhs Rs. 4000/-.
Limited Liability Partnership whose contribution exceeds Rs. 10 lakh Rs. 5000/-.
However, it may vary according to the stamp duties of respective states.
Every LLP is required to have at least two Designated Partners who shall be individuals and at least one of them shall be a Resident of India. The mutual rights and duties of partners shall be governed by the agreement between LLP and the partners. This Agreement would be known as “LLP Agreement”.
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