Search results
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%.
Apr 2, 2024 · What is LLP? In India, Limited Liability Partnership (LLP) is defined as an entity formed and registered under the Limited Liability Partnership Act, 2008. In short, it means a partnership firm that is incorporated under the LLP Act. Apart from this, it takes the form of a separate legal entity having a continuous succession, similar to companies.
People also ask
What is limited liability partnership (LLP) in India?
How LLP is governed in India?
What is LLP in India?
What does LLP stand for?
- 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
- Conclusion
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.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 not l...No Minimum Capital Requirement: There is no minimum capital requirement for the formation of an LLP. The partners can contribute any amount of capital as per their agreement.Perpetual Succession: The LLP has perpetual succession, which means that the LLP continues to exist even if the partners change or retire. The rights and liabilities of the LLP are not affected by...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 protect...Tax Benefits: LLPs in India are taxed at a lower rate compared to companies. Additionally, the partners of the LLP are taxed as per their individual tax slabs, which can result in significant tax s...Flexibility: LLPs are more flexible compared to companies when it comes to management and ownership. The partners can decide the terms of the partnership and the allocation of profits and losses.Less Compliance: LLPs in India have less compliance requirements compared to companies. They are not required to maintain minutes of meetings or hold annual general meetings.Digital Signature Certificate (DSC): The first step in registering an LLP is to obtain a digital signature certificate (DSC) for all the partners.Director Identification Number (DIN): Next, the partners need to obtain a director identification number (DIN) from the Ministry of Corporate Affairs.Name Approval: The partners need to choose a unique name for their LLP and get it approved by the ROC.LLP Agreement: The partners need to prepare an LLP agreement that outlines the terms and conditions of the partnership.Annual Return: Every LLP needs to file an annual return with the ROC.Statement of Accounts: Every LLP needs to file a statement of accounts with the ROC.Income Tax Returns: Every LLP needs to file income tax returns.Audit: LLPs with a turnover of more than Rs. 40 lakhs or capital contribution of more than Rs. 25 lakhs are required to get their accounts audited by a chartered accountant.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...
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...
- LLP is a body corporate. According to Section 3 of the Limited Liability Partnership Act 2008 (LLP Act), an LLP is a body corporate, formed and incorporated under the Act.
- Perpetual Succession. Unlike a general partnership firm, a limited liability partnership can continue its existence even after the retirement, insanity, insolvency or even death of one or more partners.
- Separate Legal Entity. Just like a corporation or a company, it is a separate legal body. Further, it is completely liable for its assets. Also, the liability of the partners has certain limitations in their contribution to the LLP.
- Mutual Agency. Another difference between an LLP and a partnership firm is that independent or unauthorized actions of one partner do not make the other partners liable.
Jun 30, 2021 · 3.1. The limited liability partnership agreement generally provides the mutual rights and duties of partners of an LLP inter-se and those of the LLP and its partners. 3.2. Some of the terms that a ...
A Limited Liability Partnership (LLP) is a business structure that combines the flexibility of a partnership and the limited liability of a company. It was first introduced in USA in 1991then in the United Kingdom in 2000, following the Limited Liability Partnership Act of 2000. The
Nov 7, 2012 · A Limited Liability Partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liability. It therefore exhibits elements of partnerships and corporations. In an LLP, one partner is not responsible or liable for another partner's misconduct or negligence. This is an important difference from ...
