Limited Liability Partnership(LLP) is new corporate entity type in India introduced by a way of Limited Liability Partnership Act, 2008. Aimed at both small and medium sized business, LLP has most positive features ofhybrid of both partnership and a company private limited. Considering this attribute, recently most of the entrepreneurs have begunopting for LLP.
Limited Liability Partnership hybridthe advantages of both Partnership and Company into a single form of firm in which one partner is not legally responsible and accountable for negligence or misconduct of another partner. Its managementis defined by LLP agreement and both partnershave the liberty to regulate affairs of the LLP.
The latest trend that has been monitored recently is that most of the entrepreneurs have started choosing for the LLP (Limited Liability Partnerships). It is a legal structure for different businesses. As the name suggests, it limits the liability of its partners. LLP also provides safeguards to each partner from the misdeeds, negligence of the other partners. Hence, it is essential to do Limited Liability Partnership Registration.
Minimum two persons are required for Limited liability partnership registration and there is no restriction regarding extending the maximum number of members. Certain benefits of limited liability partnership, easy maintenance and low registration fee make it more viable to certain businesswho expect more freedom in business to comes at least price.
When you choose us for the Partnership registration in Delhi, then you can get the following advantages:
Separate Authorized Entity:
LLP is a legal entity. Hence, LLP form of the company has a huge lawful capacity and could own the property. The LLP partners have zero liability to the LLP creditors for debts.
No Need of Audit:
If the LLP has turnover less than 40 Lakhs and contribution of below 25 Lakhs, then it does not need an audit. Therefore, the LLP is perfect for small, medium and startups. We provide partnership registration India for such businesses.
The LLP Registration with us is extremely easy to transfer to one owner to another person. You just need to change the managing partners.
LLP is all about restricting a number of debts. You can also obtain this particular benefit with us. The LLP registration process is very easy if you opt our services. If you need the best reliable services, get in touch with us!
Apply DPIN (Designated Partner Identification Number) for every proposed Designated Partners (Minimum -2) of the proposed LLP. At least one Designated Partner should have a valid Digital Signature.
As following these steps are bit complicated and a hassle for new business entity and entrepreneurs, we take all the burden of getting your LLP firm on track while you concentrate more on your business idea.
If you are interested to get into a partnership and want to get the partnership registration in Delhi, then LexOracle will be the best destination for all your partnership solutions. We at LexOracle ensure that you have a hassle-free experience while laying down the foundation of your partnership. We will ensure that our services will enable you to focus on your business rather than worrying about the hassles related to your partnership. You can contact us by giving us a call or you can also drop us a mail. We will get back to you in the least possible time.
Q) Difference between LLP & “traditional partnership firm”?
• Under “traditional partnership firm”, every partner is liable, jointly with all the other partners and also severally for all acts of the firm done while he is a partner.
• Under LLP structure, liability of the partner is limited to his agreed contribution. Further, no partner is liable on account of the independent or un-authorized acts of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful acts or misconduct.
Q) Difference between LLP & a Company?
• A basic difference between an LLP and a joint stock company lies in that the internal governance structure of a company is regulated by statute (i.e. Companies Act, 1956) whereas for an LLP it would be by a contractual agreement between partners.
• The management-ownership divide inherent in a company is not there in a limited liability partnership.
• LLP will have more flexibility as compared to a company.
• LLP will have lesser compliance requirements as compared to a company.
Q) How the mutual rights and duties of partners inter-se and those of partners and LLPs would be 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”.
Q) What are the registration formalities relating to LLPs?
LLPs shall be registered with the Registrar of Companies (ROC) (appointed under the Companies Act, 1956) after following the provisions specified in the LLP Act. Every LLP shall have a registered office. An Incorporation Document subscribed by at least two partners shall have to be filed with the Registrar in a prescribed form. Contents of LLP Agreement, as may be prescribed, shall also be required to be filed with Registrar, online.
Contents of LLP Agreement or any changes made therein, if any, may be filed in Form 3 and details of partners/designated partners may be filed in Form 4 in accordance with LLP Rules, 2009.
Q) How can a person become a partner of an LLP?
Persons, who subscribed to the “Incorporation Document” at the time of incorporation of LLP, shall be partners of LLP. Subsequent to incorporation, new partners can be admitted in the LLP as per conditions and requirements of LLP Agreement.
Q) What is the manner in which a partner of an LLP can bring his contribution? How will it be recorded/disclosed in the accounts?
Partner’s contribution may consist of both tangible and/or intangible property and any other benefit to the LLP. The monetary value of contribution of each partner shall be accounted for and disclosed in the accounts of the limited liability partnership in the manner as may be prescribed in the rules.
Q) Whether a partner would be able to transfer his ‘economic rights’?
A partner’s economic rights (i.e. rights of a partner to a share of the profits and losses of the LLP and to receive distribution at the time of winding up) in the LLP shall be transferable. However, such a transfer shall not by itself cause the partner’s disassociation or a dissolution and winding up of the LLP.
However, such transfer shall not entitle the transferee or assignee to participate in the management or conduct of the LLP’s activities. Therefore, the transferee would not be deemed to be a ‘partner’ of the LLP just because a partner has transferred him the ‘economic rights’. For becoming a partner of LLP, the manner specified in the LLP Agreement or the provisions of the Act would have to be followed.
Q) Nature & extent of liability of a partner of an LLP?
Every partner of an LLP would be, for the purpose of the business of the LLP, an agent of the LLP but not of the other partners. Liability of partners shall be limited except in case of unauthorized acts, fraud and negligence. But a partner shall not be personally liable for the wrongful acts or omission of any other partner. An obligation of the limited liability partnership whether arising in contract or otherwise, is solely the obligation of the limited liability partnership. The liabilities of LLP shall be met out of the property of the LLP.
Q) Whether other business entities like firm or company would be able to convert themselves into LLP?
The LLP Act contains enabling provisions pursuant to which a firm (set up under Indian Partnership Act, 1932) and private company or unlisted public company (incorporated under Companies Act) would be able to convert themselves into LLPs. Provisions of clause 58 and Schedule II to Schedule IV to the Act provide procedure in this regard.
Q) Whether LLP would be able to convert itself into company under the Companies Act, 1956?
This would not be allowed under LLP Act. However, enabling provisions would be required to be made in the Companies Act for such conversion. Necessary action in this regard would be taken when Companies Act would be revised.
The procedure for LLP formation and registration is very akin to that of Private Ltd Company formation process. To register a LLP in India, following documents need to be provided:
Step1:- Receive free expert counseling on LLP ( counseling on Share capital, no. of Partners and nature of Business)
Step2:- Pay 50% of the payment
Step3:- Submit the required documents self attested. Application process will start within 24 hours.
Step4:- Pay rest of the 50% at the time of execution & Final submission of documents
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|Packages Starting from||INR 9,499/-[ All inclusive ]|
LexOracle helps you get LLP registration done within 15* days without any hassle at just reasonable charges. We have designed affordable and all-inclusive package starting from JUST INR 9,499/-. Lowest prices are offered on the basis of No. of Partners, Share Capital and Nature/Objective of Business.
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Prices are inclusive of Taxes.
*Time period quoted is tentative and approximate
LexOracle is one-stop solution provider for any business entity, person or entrepreneur seeking for experienced lawyers or attorney, charted accountant and company secretary. Customer satisfaction, transparency in work and affordable cost has made us the leader of business incorporation, registration and legal services or support in India.