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As per provisions of the LLP Act, in the absence of agreement as to any matter, the mutual rights and liabilities shall be as provided for under Schedule I to the Act. Therefore, in case any LLP proposes to exclude provisions/requirements of Schedule I to the Act, it would have to enter into an LLP Agreement, specifically excluding applicability of any or all paragraphs of Schedule I.
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How many people are required to incorporate a Limited Liability Partnership?
The Designated Partners needs to be over 18 years of age and must be a natural person. There are no limitations in terms of citizenship or residency. Therefore, the LLP Act 2008 allows Foreign Nationals including Foreign Companies & LLPs to incorporate a LLP in India provided at least one designated partner is resident of India.
Can a Salaried person become a Partner in LLP?
Yes, a salaried person becomes a Partner, there are no legal bondages in this but you may have to go through with your employment agreement if it contains any restrictions on doing so.
Can I later convert my Partnership firm into a Company or LLP?
Yes, there are procedures for converting a Partnership business into a Company or a LLP at a later date. However, the procedures to convert a Partnership firm into a Company or LLP are cumbersome, expensive and time-consuming. Therefore, it is wise for many entrepreneurs to consider and start a LLP or Company instead of a Partnership firm.
How long is the LLP valid for?
Once a LLP is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the LLP will become a Dormant Company and maybe struck off from the register after a period of time. A struck-off Company can be revived for a period of up to 20 years.
Is Deloitte Consulting LLP ISO certified?
Doesn't ISO have a query page on their website in Switzerland or wherever they are headquartered?
How are mutual rights and duties of partners governed?
The mutual rights and duties of partners inter se and those of the LLP and its partners shall be governed by the agreement between partners or between the LLP and the partners. This Agreement would be known as "LLP Agreement".
What are the Consequences of Non-Compliance for LLPs?
If there is any delay in filing Form-8 and Form-11 of LLP, you will have to pay the penalty of Rs. 100/day of default. One cannot wind up or close their LLP without filing Annual Accounts. Also, non-compliance with any of the mandatory requirements may lead to heavy penalties
What are the advantages of registering an LLP in India?
The advantages of registering an LLP in India include: Limited Liability: Partners' liability is limited to the extent of their contribution to the LLP. Separate Legal Entity: The LLP is a separate legal entity from its partners, allowing it to own assets, incur liabilities, and enter into contracts. Flexibility in Management: Partners have the flexibility to manage the LLP as per the LLP agreement without adhering to stringent regulations. No Minimum Capital Requirement: There is no minimum capital requirement to start an LLP. Tax Benefits: LLPs enjoy certain tax advantages and exemptions, such as not being subject to dividend distribution tax.
What are the documents required to change LLP agreement?
The following documents are required to change LLP agreement : What are the documents required to change LLP agreement? Documents to be enclosed with Form 3: Original LLP Agreement Modified LLP agreement Supplementary Deed Resolution regarding the changes to be made, which is passed in a meeting by the LLP Partners Any supplementary forms or documents required as proof Documents to be enclosed with Form 4 Consents of each of the partners An affidavit or other proof of a change in name Evidence of cessation If any of the partners is a company, the copy of the resolution in this regard Copy of authorization/resolution mentioning the name & address of individuals(s) nominated as a representative of the partner/nominee
what is llp registration?
LLP registration refers to the process of legally forming a Limited Liability Partnership (LLP). An LLP is a hybrid business entity that combines elements of partnerships and corporations. It offers the flexibility of a partnership with the limited liability protection of a corporation, making it a popular choice for professional services firms, small and medium-sized businesses, and startups. Key Features of an LLP: Limited Liability: Partners in an LLP are protected from personal liability for business debts and claims. Their liability is limited to their investment in the LLP. Separate Legal Entity: An LLP is a separate legal entity from its partners, meaning it can own property, incur debts, and sue or be sued in its own name. Flexible Management Structure: Unlike corporations, LLPs have fewer regulatory requirements and offer more flexibility in management and operations. Taxation: LLPs often benefit from pass-through taxation, where profits are passed directly to the partners and taxed at their individual income tax rates, avoiding corporate tax rates. LLP Registration Process: The specific steps and requirements for LLP registration can vary by country, but generally, the process involves: Name Reservation: Choose a unique name for the LLP and check its availability with the relevant authority (e.g., Companies House in the UK, Ministry of Corporate Affairs in India). Partnership Agreement: Draft a formal partnership agreement outlining the rights, duties, and obligations of the partners. This agreement typically covers aspects like profit-sharing, decision-making processes, and dispute resolution. Filing Incorporation Documents: Submit the necessary incorporation documents to the relevant government body. This often includes forms detailing the LLP's name, registered office address, details of partners, and the partnership agreement. Pay the required registration fees. Obtain Certificate of Incorporation: Once the application is approved, the authority issues a Certificate of Incorporation, confirming the formation of the LLP. Post-Incorporation Compliance: Obtain necessary licenses and permits, if applicable. Register for taxes, such as VAT or GST, and other mandatory registrations (e.g., employer identification numbers). Maintain proper records and file annual returns and financial statements as required by law. Benefits of Registering an LLP: Limited Liability Protection: Protects personal assets of partners from business liabilities. Operational Flexibility: Less regulatory compliance compared to corporations. Tax Advantages: Potential tax benefits, including avoidance of double taxation. Credibility: Registered LLPs are perceived as more credible by clients, suppliers, and investors. Conclusion: Registering an LLP involves a series of steps to ensure legal recognition and compliance with regulatory requirements. By choosing an LLP structure, businesses can benefit from limited liability protection while enjoying operational flexibility and potential tax advantages.
Does LLP need to have a physical office registered?
Yes, it is mandatory for an LLP to have physical office presence though it is not mandatory, to rent or own a office separately it is okay if the business operates completely remotely, any address, like the address of the owners can be named as the registered office.
What are the key steps involved in registering an LLP in India?
The key steps involved in registering an LLP in India are: Obtain Digital Signature Certificate (DSC): Partners must obtain DSCs for signing electronic documents. Apply for Director Identification Number (DIN): Partners need to apply for DINs, which can be done through the LLP registration process. Name Reservation: Submit the desired LLP name for approval through the RUN-LLP service on the MCA portal. Filing Incorporation Documents: File Form FiLLiP (Form for incorporation of LLP) with required documents, including the LLP agreement. Obtain Certificate of Incorporation: Once the application is verified and approved, the Registrar of Companies (ROC) issues the Certificate of Incorporation. Filing LLP Agreement: The LLP agreement must be filed within 30 days of incorporation using Form 3.
What are the Different Types of LLP Forms in India?
Following is the list of all types of LLP Forms in India: FiLLiP Form: This form is used for the incorporation of LLP in India. Run LLP: This form is used for reserving a name for the LLP. Form 3: Details regarding LLP Agreement. Form 8: Statement of Account & Solvency. Form 11: Annual Return of LLP. Form 24: This is the application to the ROC for striking off the name of LLP.
What is the process of changing an LLP agreement?
The step by step process to change LLP agreement is as follows : Step 1: The partners must meet to pass a resolution for the required changes in the draft LLP agreement. This may be to change capital contribution, for example. Step 2: Within 30 days of the passing of the resolution, Form-3 needs to be filed with the Registrar. The details to be submitted in Form 3 are : Date of LLP agreement modification Reason of the modification in the LLP agreement sample– whether it is due to: Change in a partner(s) Change in business activities Change in contribution and profit sharing percentage of any of the partners Any other change in matters Duties & rights of partners Restrictions imposed on the authority of any or all of the partners Administration and management of the LLP The procedure of calling and conducting meetings Acts that can be made only with the approval of all or a specific number of the partners Contents of the indemnity clause The partners’ Inclusion Retirement Cessation Resignation and Expulsion Disputes and resolution of issues related to The partners The partner and the LLP Possible activities of the business after the change The division of industrial activity after the change in the LLP agreement format. The details of contribution and profit sharing percentage of the partners after the change in the LLP agreement Step 3: Form-4 needs to be filed with the Registrar (along with the Form-3), If the change in the LLP agreement format is due to the change in a partner(s) or designated partner(s). In case of the appointment, cessation or change in designation/name/address of partner(s) or designated partner(s).
What is a “Limited Liability Partnership” or “LLP”?
LLP or Limited Liability Partnership has become a popular form of organization among entrepreneurs in India. A Limited Liability Partnership gives the benefits of a Company & a Partnership Firm. An LLP in India is a Partnership Firm established by at least 2 Partners who enter into an LLP Agreement. However, the LLP Partner have limited liability and the LLP has perpetual succession just like a Company.
What is LLP annual Compliance and know more Benefits about LLP annual Compliance?
LLP Partnership Annual Compliance A Limited Liability Partnership (LLP) is a kind of partnership in which all or some partners have limited liabilities. It can so demonstrate elements of both the entity type that includes partnerships and corporations. LLP is seen as a good alternative form of corporate business known to provide individuals with the advantage of the flexibility of a partnership and the limited liability of a company. The Annual Compliance needs you to file the following two LLP forms: • Annual Returns • Statement of Accounts or financial statements Mandatory Compliance for an LLP Filing mandatory compliance for LLP is a complex task. You can hire Valcus for the same. We are experts in doing the work of filing compliance and assure satisfactory services always. LLP compliances after incorporation Soon after the incorporation of a limited liability partnership, you are liable to abide by the LLP compliances after incorporation in India. Some of the necessary and common LLP compliances after incorporation are: • PAN application is to be submitted immediately because it is a mandatory document useful to open a bank account and obtain other documents. • Bank account opening – for the registered LLP a current bank account needs to be opened on high priority for the business transactions • Form 8 (Statement of Account and Solvency) • Form 11 (Annual Return of LLP) • Filing of Income Tax Return • Mandatory Audit of Accounts • KYC of appointed partners For More Details Visit Online Valcus Pvt Ltd
Why Convert Your Private Limited Company into an LLP?
Real-World Scenario: A Successful Conversion Take the case of TechWave Innovations, a SaaS startup based in Pune. In 2023, they decided to convert their Private limited company into an LLP. This decision reduced their annual compliance costs by ₹1.2 lakh and saved the company 20% in taxes by avoiding the Dividend Distribution Tax (DDT). Top Reasons to Convert: Limited Liability Protection: As in a Pvt Ltd company, the liabilities of partners in an LLP are limited to their contribution. This ensures personal assets are protected from business-related liabilities. Compliance Reduction: Unlike Pvt Ltd companies, which need to file multiple forms, LLPs are only required to submit two annual filings—Form 11 and Form 8. This significantly reduces the administrative burden. Tax Efficiency: LLPs don’t pay Dividend Distribution Tax, saving up to ₹2 lakh on ₹20 lakh profit. Profits are taxed only in the hands of the partners at a flat rate of 30%. Operational Flexibility: LLPs don’t require board meetings or resolutions to change the profit-sharing ratio, making it easier to manage the business. No Mandatory Audit: For LLPs with turnover under ₹40 lakhs, there’s no need for audits, reducing unnecessary costs.
