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No LLCs
- Unfortunately, there are no LLCs in India. The closest thing to an LLC in India would have to be a Limited Liability Partnership (LLP).
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How LLPs are incorporated in India?
What is limited liability partnership (LLP) in India?
How LLPs are governed in India?
What is LLP in India?
Jan 11, 2024 · Limited Liability Partnerships (LLPs) have become popular for businesses in India due to their unique blend of partnership and corporate structures. It provides operational flexibility, ease of operation, and tax benefits while maintaining a simplified compliance regime.
- What is the major advantage of LLP?The major advantage of an LLP firm is that all the partners’ personal assets are not subjected to inception or action as they are all limited to th...
- What is the purpose of LLP?LLP allows you to have the benefits of a limited company and is also flexible of a partnership at the same time. LLP can continue to exist even if...
- How many partners are needed in an LLP firm?An LLP must have at least 2 partners, to begin with; It can scale up to more than 50+ partners. However, you can run your LLP business for a maximu...
- Is GST required for LLP?No GST is not mandatory to file an LLP. Eventually, you will be required to submit your GST details during taxation based on your turnover and serv...
- What is the tax percent in LLP?LLP firms are subjected to a 30% tax, similar to a partnership firm. The partners are expected to file their tax returns on 30%.
Aug 10, 2023 · LLPs in India are protected and governed under the Limited Liability Partnership Act of 2008 and it’s implementing rules, referred to as the Limited Liability Rules of 2009. Read our Article : How To Differentiate Between LLP And LLC?
In India, the LLP form of business organization was introduced relatively recently with the enactment of the Limited Liability Partnership Act, 2008. This article delves into the legal history of LLPs in India, tracing its origins, key milestones, and notable developments.
- Salient Features of An LLP
- Benefits of LLP in India
- Registration Process For LLP in India
- Compliance Requirements For LLP in India
- Ownership and Management of LLP
- Advantages of LLP in India
- Taxation of LLPs
- Conversion to LLP
- Foreign LLPs in India
- Conclusion
1. Separate Legal Entity:An LLP is a separate legal entity from its partners. It can enter into contracts, own assets, and sue or be sued in its own name. 2. Limited Liability: The liability of partners in an LLP is limited to the extent of their contribution to the LLP. In case of any default or negligence, the personal assets of the partners are ...
1. Limited Liability Protection: One of the key advantages of an LLP is that it provides its partners with limited liability protection. This means that the personal assets of the partners are protected in the event of any legal action or debt incurred by the LLP. 2. Tax Benefits: LLPs in India are taxed at a lower rate compared to companies. Addit...
1. Digital Signature Certificate (DSC): The first step in registering an LLP is to obtain a digital signature certificate (DSC) for all the partners. 2. Director Identification Number (DIN): Next, the partners need to obtain a director identification number (DIN) from the Ministry of Corporate Affairs. 3. Name Approval: The partners need to choose ...
1. Annual Return: Every LLP needs to file an annual return with the ROC. 2. Statement of Accounts: Every LLP needs to file a statement of accounts with the ROC. 3. Income Tax Returns: Every LLP needs to file income tax returns. 4. Audit: LLPs with a turnover of more than Rs. 40 lakhs or capital contribution of more than Rs. 25 lakhs are required to...
An LLP in India is required to have at least two partners, and there is no limit on the maximum number of partners. The partners can be individuals or companies. Unlike a traditional partnership, the liability of the partners in an LLP is limited to their agreed contribution to the LLP. The partners can agree to share profits and losses in any prop...
The following are the advantages of an LLP in India: 1. Limited Liability: The biggest advantage of an LLP is that it provides limited liability protection to its partners. This means that the personal assets of the partners are not at risk in case the business fails or is sued. 2. Separate Legal Entity: An LLP is a separate legal entity and has it...
LLPs are taxed differently from traditional partnerships and companies in India. The income of an LLP is taxed at the flat rate of 30% (plus surcharge and cess, as applicable) on the total income. However, the partners of an LLP are not taxed on the income that is earned by the LLP. Instead, the income is taxed in the hands of the partners only whe...
In India, it is possible for a traditional partnership firm or a private company to convert into an LLP. The process involves obtaining approval from the shareholders or partners, obtaining clearance from the Income Tax Department, and filing the necessary documents with the ROC. Once the conversion is complete, the traditional partnership firm or ...
Foreign LLPs can also operate in India, subject to certain conditions. They are required to register with the ROC and obtain a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department. However, foreign LLPs are not allowed to engage in certain activities such as agricultural or plantation a...
LLP is a popular form of business structure in India due to its numerous advantages. It provides limited liability protection to its partners, is easy to form and maintain, and enjoys tax benefits. However, there are certain compliance requirements that need to be followed, and LLPs may not be suitable for all types of businesses. It is important t...
Jul 3, 2020 · History of Limited Liability Partnership in India. Meaning of Limited Liability Partnership (LLP) Governance of Law. Features of LLP. Process of Registration of Limited Liability Partnership (LLP) Members in Limited Liability Partnership (LLP) Difference Between Partnership and LLP. General Clauses in LLP Agreement.
- Ayush Verma
Data Protection and Privacy: If the LLP handles personal data, it might need to comply with data protection and privacy regulations, such as the General Data Protection Regulation (GDPR) in the European Union.
In India, LLPs are governed by the provisions of the Limited Liability Partnership Act, 2008 (LLP Act) (effective by way of notification dated 31 March 2009) and the Limited Liability Partnership Rules, 2009 (LLP Rules).
