A limited liability partnership (LLP) is a partnership in which some or all partners have limited liabilities. 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 concept introduced 1st time in 2009 in India.
Advantage
- Formation & Dissolution is very easy
- Every partners enjoy limited liability.
- Every Partners directly manage the business directly.
- Management, distribution, etc., are governed by the partnership agreement
- Compliance – Lesser and flexible as compared to limited companies
- Flexible Management & Capital Structure
Registration Process
- Get Digital Signature Certificate (DSC) of proposed partners.
- Get Designated Partner Identification Number (DPIN) of proposed partners.
- Application for proposed Name approval filed in Form-1 online.
- After name approval, filed Form-2 to MCA for approval.
- Draft LLP agreement (Partnership Deed) & filed alongwith Form-3 online within 30 days.
- Get Registration Certificate.
Compliance after Incorporation of LLP
- Apply for PAN & TAN
- Apply for Sales Tax / VAT Registration based on the nature of Business.
- File Income Tax Return on or before 30th September every year.
- Maintain Proper Books of Accounts.
- Filed Form 8 for statement of Solvency every year within 30 days from the expiry of 6 months from the end of financial year i.e by 30 October.
- Filed Form 11 for Annual Return every year within 60 days from close of Financial Year i.e by 30th May.
