{"id":2185,"date":"2022-05-04T04:48:36","date_gmt":"2022-05-04T10:18:36","guid":{"rendered":"https:\/\/smjadvisors.com\/?p=2185"},"modified":"2022-05-17T06:22:53","modified_gmt":"2022-05-17T11:52:53","slug":"limited-liability-partnership","status":"publish","type":"post","link":"https:\/\/smjadvisors.com\/limited-liability-partnership\/","title":{"rendered":"Limited Liability Partnership"},"content":{"rendered":"\n<p><strong>Limited&nbsp; Liability Partnership<\/strong> (LLP) is a preferred form of organization among business people as it integrates the advantages of both partnership firm and company into a single type of association.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><em>The concept of the <\/em>Limited Liability Partnership<em> (LLP) was presented in India in 2008. An LLP has the attributes of both the partnership firm and company.&nbsp; LLP in India is regulated by Limited Liability Partnership Act, 2008<\/em><\/p><\/blockquote>\n\n\n\n<p>In the firm, there should be at least two designated partners who are individuals, and at least one of them should reside in India. The LLP agreement determines the rights and duties of the designated partners. LLP members are directly responsible for ensuring compliance with all provisions of the LLP Act, 2008.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized is-style-rounded\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/smjadvisors.com\/wp-content\/uploads\/2022\/05\/handshake-close-up-executives-1024x683.jpg\" alt=\"\" class=\"wp-image-2186\" width=\"768\" height=\"512\" srcset=\"https:\/\/smjadvisors.com\/wp-content\/uploads\/2022\/05\/handshake-close-up-executives-1024x683.jpg 1024w, https:\/\/smjadvisors.com\/wp-content\/uploads\/2022\/05\/handshake-close-up-executives-300x200.jpg 300w, https:\/\/smjadvisors.com\/wp-content\/uploads\/2022\/05\/handshake-close-up-executives-768x512.jpg 768w, https:\/\/smjadvisors.com\/wp-content\/uploads\/2022\/05\/handshake-close-up-executives-1536x1024.jpg 1536w, https:\/\/smjadvisors.com\/wp-content\/uploads\/2022\/05\/handshake-close-up-executives-2048x1365.jpg 2048w, https:\/\/smjadvisors.com\/wp-content\/uploads\/2022\/05\/handshake-close-up-executives-1x1.jpg 1w, https:\/\/smjadvisors.com\/wp-content\/uploads\/2022\/05\/handshake-close-up-executives-10x7.jpg 10w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Requirements to start a Limited Liability Partnership<\/strong>:<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Minimum Two People &#8211;<\/strong><\/li><\/ul>\n\n\n\n<p>Two individuals are expected to register the LLP. No maximum limit on partners.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>No Minimum Capital &#8211;<\/strong><\/li><\/ul>\n\n\n\n<p>Capital depends upon the need of the business and on the partner&#8217;s contribution. The Stamp Duty on the deed is based on the capital needed.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Resident Person &#8211;<\/strong><\/li><\/ul>\n\n\n\n<p>One Designated partner must be a resident of India.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Name &#8211;<\/strong><\/li><\/ul>\n\n\n\n<p>The name should be unique and it should not be the same or like the name of any existing organization.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Characteristics of Limited Liability Partnership<\/strong>:<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>LLP has a separate legal entity exactly like a company.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Partner&#8217;s liability is limited, only to the contribution made by every partner.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>The incorporation cost is low.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Regulations and compliances are also less.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>No minimum capital is required.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Benefits of Limited Liability Partnership<\/strong>:<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>LLP Partners&#8217; Liability &#8211;&nbsp;<\/strong><\/li><\/ul>\n\n\n\n<p>The LLP partners&#8217; liability is limited, but it&#8217;s only to the extent that they contributed to the LLP.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Separate Legal Entity &#8211;<\/strong><\/li><\/ul>\n\n\n\n<p>An LLP is a separate legal entity and a distinct legal person from its partners, and both can sue each other and be sued.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>LLP continuity &#8211;<\/strong><\/li><\/ul>\n\n\n\n<p>&nbsp;The LLP continues to exist even after the death of a partner.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Regulations are minimal &#8211;<\/strong><\/li><\/ul>\n\n\n\n<p>LLPs do not have to comply with regulatory requirements as much as companies do.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Ownership of property &#8211;<\/strong><\/li><\/ul>\n\n\n\n<p>LLP is entitled to own, enjoy, and transfer property. This right can be exercised by the LLP in its own name.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Audit &#8211;<\/strong><\/li><\/ul>\n\n\n\n<p>As long as the turnover is less than 40 lakhs and the capital contribution is less than 25 lakhs, there is no audit requirement.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Ownership transferability &#8211;<\/strong><\/li><\/ul>\n\n\n\n<p>The ownership of an LLP can be easily transferred to another individual. Transferees should be inducted as Designated Partners of the LLP.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Taxes &#8211;<\/strong><\/li><\/ul>\n\n\n\n<p>Both Partners and LLPs can lend to one another. LLPs do not pay dividend tax.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Registration procedure of Limited Liability Partnership<\/strong>:<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Digital Signature Certificate (DSC) &#8211;<\/strong><\/li><\/ul>\n\n\n\n<p>To sign the e-application for registration of LLP DSC is mandatory.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Name &#8211;<\/strong><\/li><\/ul>\n\n\n\n<p>The application for registration of LLP name approval is required. The name of LLP should be unique and should not be similar to the existing company.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Registration Certificate &#8211;<\/strong><\/li><\/ul>\n\n\n\n<p>The certificate of incorporation is issued by the registrar after his\/her satisfaction.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>LLP Agreement &#8211;<\/strong><\/li><\/ul>\n\n\n\n<p>After incorporation of the LLP, the partners must enter into an LLP Agreement and file it with the Registrar within 30 days of incorporation<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>PAN &amp; TAN of LLP &#8211;<\/strong><\/li><\/ul>\n\n\n\n<p>For the smooth running of the business, PAN and TAN are required.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Bank Account&nbsp; &#8211;&nbsp;<\/strong><\/li><\/ul>\n\n\n\n<p>LLPs must open a current account in their business name in order to conduct business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Documents For Limited Liability Partnership Registration<\/strong>:<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>A passport-size photograph of each partner&nbsp;<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Each partner&#8217;s PAN (Permanent Account Number) (minimum 2)&nbsp;<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>&nbsp;A copy of each partner&#8217;s identity proof (Aadhar card, passport, driver&#8217;s licence, or voter ID card)&nbsp;<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>A proof of address for each partner (Bank statement or passbook, electricity bill, telephone bill, Aadhar card or any utility bill)<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Copy of all partners&#8217; mobile bills, telephone bills, electricity bills, or bank statements with current addresses<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>&nbsp;Proof of Registered Office &#8211; Electricity Bill and Rent Agreement\/Ownership of proposed registered office.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>&nbsp;Self-attested documents for LLP Agreement of State where LLP is to be incorporated.<\/li><\/ul>\n\n\n\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Limited&nbsp; Liability Partnership (LLP) is a preferred form of organization among business people as it integrates the advantages of both partnership firm and company into a single type of association. The concept of the Limited Liability Partnership (LLP) was presented in India in 2008. An LLP has the attributes of both the partnership firm and &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/smjadvisors.com\/limited-liability-partnership\/\"> <span class=\"screen-reader-text\">Limited Liability Partnership<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":2186,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","footnotes":""},"categories":[29],"tags":[77,78,79,80,81],"class_list":["post-2185","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-start-business","tag-limited-liability-partnership","tag-limited-liability-partnership-act-2008","tag-limited-liability-partnership-company","tag-limited-liability-partnership-deed","tag-limited-liability-partnership-documents"],"_links":{"self":[{"href":"https:\/\/smjadvisors.com\/wp-json\/wp\/v2\/posts\/2185","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/smjadvisors.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/smjadvisors.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/smjadvisors.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/smjadvisors.com\/wp-json\/wp\/v2\/comments?post=2185"}],"version-history":[{"count":3,"href":"https:\/\/smjadvisors.com\/wp-json\/wp\/v2\/posts\/2185\/revisions"}],"predecessor-version":[{"id":2198,"href":"https:\/\/smjadvisors.com\/wp-json\/wp\/v2\/posts\/2185\/revisions\/2198"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/smjadvisors.com\/wp-json\/wp\/v2\/media\/2186"}],"wp:attachment":[{"href":"https:\/\/smjadvisors.com\/wp-json\/wp\/v2\/media?parent=2185"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/smjadvisors.com\/wp-json\/wp\/v2\/categories?post=2185"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/smjadvisors.com\/wp-json\/wp\/v2\/tags?post=2185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}