article,LLP,registration,LLP-L business, insurance An article on LLP registration


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LLP-Limited Liability Partnership is a kind of legal form which  is usable in India and administered by  LLP Act 2008; effective from April 1, 2009. This form is used to register a LLP which has peculiar aspects, analogous to accountability. Lawyers, Certified General and Charted Accountants can form a LLP. This is a corporate trade automobile that empowers experienced and new business executives to get amalgamated and serve with resilience and efficiency. The FDI in LLP were restricted to engage in downstream investments in past. But now, FDI is permitted under automatic route in LLp to make downstream investments.Any individual or a body corporate can be a partner in a LLP. Designated partners are assigned to do duties and discharging the liabilities of partners under LLP Act. To be a designated partner, he/ she need a valid DSC and DIN. Minimum 2 partners and 2 designated partners are required for the formation of an LLP and unlimited maximum number of partners. Unlike corporate shareholders, the partners holds the rights to supervise the business in a direct manner. One partner will not take the responsibility or liable for the negligence and mismanagement of other partners. The steps involved in incorporating a limited liability company is (1) procuring DSC- Digital Signature Certificate and DIN- Director Identification Number (2) reservation of the name for the proposed LLP (3) Incorporating LLP and (4) Execution of LLP agreement. The documents which are required for filing the LLP with Registrar are namely as follows, (*) Acquiescence of partners (*) Address proof of registered LLP office (*) Identity and address proofs of partners and designated partners (*) No objection certificate (NOC) from the trademark owner (*) Main objectives of LLP and (*) Approval from secretarial regulator. There is no precondition of minimum investment benefaction and especially no minimum alternate tax.LLP is a combination that gives advantages of limited liability company and resilience of a partnership company and it is an independent legal entity. The LLP office  should be a substantial  office where the staff member  shall be placed for carrying out the business operations and is available for inspection, authentication and for obtaining registrations under the laws applicable to an LLP. Evolution of an LLP has two segments. The first o segment  is  to apply for reservation of name  pursued by legal  embodiment of an LLP. Once LLP is incorporated, within 30  days, it should file the LLP Agreement. The fundamental post incorporation compliances that are to be undertaken in an LLP are namely   (*) solicit of TAN and PAN (*) bank account (*) GST, ESI, EPF, Professional tax and shop establishments, etc. The LLP should be incorporated for a profitable business that leads to perpetual succession. LLP has the provision to maintain annual accounts and audit of the accounts is required only  in case of contribution exceeds beyond 25 lakhs and turnover exceeds beyond 40 lakhs.  An LLP cannot raise money from public. The incorporation cost  of LLP company is low and it has lesser conformity prerequisites, smooth to administer and run and also painless to wrap up and dissolve the company which offers the unique kind of legal freedom.  But, the Angel Investors and Venture Capitalists (VC'S)  will prefer investing in a company rather than a Limited Liability Partnership. The Head location for LLP incorporation is centralized at our Capital Delhi. The difference between a limited company and a limited liability partnership is that - a limited company is completely separate from its owners(i.e) they are responsible for business debts and provides guarantee to the company whereas limited liability partnership usually operates as a partnership like accountancy firms or solicitors and similar to a normal partnership in terms of tax liability.

article,LLP,registration,LLP-L

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