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Jan 2, 2024 · The said Bill was passed by the Cabinet on Wednesday, 28th July 2021. 3. Purpose of Amendment in LLP Act: a) To encourage start-ups and improve ease of doing business. b) To encourage businesses to incorporate LLP’s. c) To make it popular and convenient for Startups. d) To remove the fear of criminal prosecutions.
Oct 13, 2010 · This is newly introduced in India. This article is an effort to give brief introduction on meaning, definition as per act. US LLP definitions & Comparison study of US v/s Indian tax laws on LLP. Meaning: A limited liability partnership (LLP) is a partnership in which partners have limited liability.
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What is a limited liability partnership (LLP)?
Jan 11, 2024 · A Limited Liability Partnership (LLP) is a business entity that combines the advantages of both partnerships and companies. It provides its members with limited liability protection, like that of a company, while maintaining a partnership’s flexibility and tax benefits. In an LLP, the partners have limited liability for the firm’s debts and ...
- 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%.
- ♦ Definition
- ♦ Mandatory Compliances For An LLP
- ♦ Brief Overview of The Mandatory LLP Compliances
- ♦ Tax Structure of LLP For F.Y. 2018-19 & A. Y. 2019-20
- ♦ Penalty Or Consequences For Not Filing Form 11 and Form 8
- ♦ Privileges For LLP in Comparison to A Private Limited Company
- Some Key Points About LLP
Define Limited Liability Partnership (LLP) u/s 2(n) of LLP Act 2008: “Limited Liability Partnership” means a partnership formed and registered under Limited Liability Partnership Act, 2008. Define Foreign Limited Liability Partnership (FLLP) u/s 2(m) of LLP Act 2008: “Foreign Limited Liability Partnership” means a limited liability partnership form...
Registered LLPs with the Ministry of Corporate Affairs (MCA) needs to file the following mandatory compliance requirements : I. Filing of Annual Return – LLP Form-11 II. Filing Statement of Account & Solvency – LLP Form-8 (Statement of Statement of the Accounts/Financial Statements) III. Filing of Income Tax Returns
1. Filing LLP Annual Return
Annual Return or Form 11 is a summary of an LLP’s Partners and indication of change in the management. Every LLP is required to file Annual Return in Form 11 to the Registrar within 60 days of closer of financial year i.e. has to be filed on or before 30th May every year.
2. Filing of Statement of Account & Solvency
(Filing of Annual Accounts/ Statement of Accounts/ Financial Statements/ P&L & Balance Sheet) a) LLP must maintain proper books of account. The accounts may be on cash basis or accrual basis. b) Statement of Solvency (Accounts) needs to be prepared every year ending on 31st March. c) LLP Form – 8 should be filed with the Registrar of Companies on or before 30th October every year. d) It should be noted that LLPs / FLLPs whose annual turnover exceeds Rs. 40 lakh or partner’s obligation of cont...
3. Filing of Income Tax Return
LLP can file its return of income in ITR 5. it is mandatory for LLP to file return of income electronically under digital signature if its accounts are required to be audited under section 44AB.
♦ The Income Tax rate for LLPs is 30% (flat): a) Surcharge:The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds Rs. 1 crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds Ra. 1 crore rupees, the total amount payable as income-tax and surcharge...
1. For LLP per day penalty of Rs. 100 till the filing is completed. (Separately for both forms) So for example: If the Form 11/ Form 8 of your LLP is not filed within the due dates and suppose the delay is of 10 days for each form then the Government penalty fees will be Rs. 2000 in total i.e.: “Rs. 1,000 (i.e. @ Rs. 100 per day for 10 Days) for Fo...
1. Exemptions from maintenance of Minutes book, Statutory Registers, and flexible tax rates etc. 2. No, AGM is not required for an LLP. AGM is a once in a year meeting for Shareholders of the Company. As there is no concept of shareholding in an LLP, no AGM is to be held. 3. Board meeting is generally associated with a Board of Directors meeting. T...
1. Can an existing partnership firm be converted to LLP? Yes, an existing partnership firm can be converted into LLP by complying with the Provisions of clause 58 and Schedule II of the LLP Act. ROC – Filings: Form 17 needs to be filed along with Form 2 for such conversion and incorporation of LLP. 2. Can an existing company be converted to LLP? Ye...
- Brief Overview. What is a Limited Liability Partnership (LLP)? An LLP is a form of business organization that has become popular among entrepreneurs as it gives the benefits of a private limited company (such as limited liability and separate legal entity) along with flexibility offered by a traditional partnership firm.
- Taxation of LLP. An LLP is taxed in the same way as a traditional partnership firm subject to certain exceptions like the benefit of presumptive taxation under section 44AD or section 44ADA of Income-tax Act, 1961 (“Income-tax Act”) is not applicable for LLP but applies to a partnership firm.
- Advantages of LLP. i) Separate Legal Entity: It means that in the eyes of law, LLP is separate from its partners just like a company is separate from its shareholders.
- Disadvantages of LLP. i) Public Disclosure: Public disclosure is the main disadvantage of an LLP. The documents filed through the MCA portal are public documents.
Apr 16, 2024 · Limited Liability Partnership - "Limited liability partnership means a partnership formed and registered under this Act”. The act makes it clear LLP is to be denoted ‘only’ to that partnership business which is formed under the rules stated in this Act, and registered in this Act itself. The definition is exhaustive, as it uses the word ...
Dec 27, 2014 · The article seeks to provide an in-depth analysis of the various provisions relating to a Limited Liability Partnership (LLP). Key features of LLP. a. LLP is a body corporate & legal entity distinct from its partners. LLP has perpetual succession. All the partners shall act as the agent of the LLP but not of the other partners.
