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Aug 3, 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.
- 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...
- 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...
- 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...
- 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...
- LLP firms are subjected to a 30% tax, similar to a partnership firm. The partners are expected to file their tax returns on 30%.
People also ask
What is limited liability partnership (LLP) in India?
Why is LLP a popular business structure in India?
How LLP is governed in India?
What is an LLP in India?
- 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...
Aug 29, 2023 · Contents show. What is a limited liability partnership? A limited liability partnership (LLP) is a hybrid corporate entity with a company’s benefits of limited liability and a partnership’s flexibility. The partners have limited liability and are independent of the actions of other partners.
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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.
Feb 28, 2022 · In India, the term Limited Liability Partnership (LLP) was first introduced in the year 2008 through a legislation of Limited Liability Partnership Act, 2008 which governs all the LLPs in the country.
May 31, 2021 · 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 .
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.
