Everything You Should Know About LLP Registration

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Keeping in mind the various needs of business, India introduced a new type of corporate entity in 2008 as Limited Liability Partnership. Aiming at helping medium and small size business both, LLP is a combination of both private limited company and partnership. Since LLP hybrids the benefits of both private limited company and partnership, therefore, one partner in LLP is not answerable to misconduct or misbehaviour of another partner. In LLP, usually, every partner is assigned limited liability unlike partnership firm. Since it offers limited liability and independent legal status, therefore, the financial responsibility gets reduced that maintains the finance of members at the personal level rather than their capital contribution. Here, in this blog, from Limited Liability Partnership Registration to its benefits, and other facts, everything that a person should know about LLP is discussed.

Reasons why should you look for Limited Liability Partnership Registration:   

 1. Easy to establish: It is very easy to incorporate Limited Liability Partnership firm. Even, it is possible to incorporate it the same day. For establishing LLP, usually, at least 2 members aimed at making profits in the business are required. An LLP does not require filing an agreement for business operations at Companies House. There is no need for any kind of document between members.

2. Efficiency: An LLP seems to be more attractive because it is an integration of partnership and private limited company. You can easily modify its management, structure, and allocation of profits. There should be a minimum of 2 designated members in an LLP firm.

3. Limited liability: Limited liability is the main attraction for an LLP that is purely a unique concept than a traditional partnership. Since it is an isolated legal entity, therefore no member will be legally responsible for the debts of LLP, but when they can be liable only when an LLP becomes insolvent.

4. Easy to appoint members: Since LLP does not require sharing of capital, therefore, new members don’t need to bring any shares. New members just need to make an agreement with the present members in LLP.

Characteristics of Limited Liability Partnership Registration:

  1. Although there is no such limit on the number of directors in an LLP, but it is essential to have at least 2 partners in every LLP. The partners of LLP firm can be body corporate and individual as well.
  2. If you are running LLP in India, it is mandatory to have a minimum of 2 designated partners and one of them should have Indian residency.
  3. One person can become a partner of several LLP.
  4. Every LLP firm needs to file annual returns to the registrar within a period of 60 days of the end of financial year.
  5. LLP is required to prepare solvency statement and statement of accounts for reporting to the Ministry of Corporate Affairs before six months of the end of the financial year.

If you are willing to run your business as Limited Liability Partnership firm, then get Limited Liability Partnership Registration done at LexOracle in just a few days at pocket-friendly prices.

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